South Korea Economy Expands 0.6% QoQ

The South Korean economy advanced 0.6 percent quarter-on-quarter in the three months to June 2018 after a 1 percent expansion in the previous period and below both market expectations and the preliminary print of 0.7 percent, final data showed. The downwardly revised figure was explained by softer expansions in manufacturing and services and steeper contractions in primary activity and construction when compared to preliminary data, with utilities also rebounding less than the original data showed.

Slower increases were recorded for manufacturing (+0.6 percent vs +1.6 percent in Q1) and services (+0.5 percent vs +1.1 percent), and contractions in primary activity (-2.8 percent vs +6.0 percent) and construction (-3.1 percent vs +2.1 percent), more than offsetting a sharp rebound in utilities (+9.4 percent vs -7.0 percent).

By expenditure, the softer overall growth was explained by a sharp 2.9 percent decline in gross fixed capital formation (vs +2.0 percent), with facilities falling 5.7 percent (vs +3.4 percent); construction 2.1 percent (vs +1.8 percent); and intellectual property rights 0.7 percent (vs +0.3 percent). Also, final consumption expenditure expanded less (0.3 percent after a 1.1 percent expansion in the first quarter), with both private and public spending rising 0.3 percent. Meantime, exports grew only 0.4 percent (vs +4.4 percent) and imports declined 3.0 percent (vs +4.9 percent).

Year-on-year, the economy expanded 2.8 percent, matching the 2.8 percent growth recorded for the previous quarter and slightly below the 2.9 percent preliminary expansion and the final consensus estimate.

South Korea Economy Expands 0.6% QoQ

Bank of Korea | Mario |
9/4/2018 11:06:23 AM