South Korea GDP Expands 0.9% QoQ in Q3

The South Korean economy advanced 0.9 percent on quarter in the three months to September compared with a 0.5 percent expansion in the previous period and due to a rebound in private consumption and higher construction investment.

On the expenditure side, private consumption expanded by 1.1 percent as expenditures on both semi-durable goods and services increased. Construction investment grew by 2.9 percent, with increases in both building construction and civil engineering. Facilities investment fell by 0.8 percent, due to a decrease in transport equipment investment. Intellectual property products investment expanded by 0.6 percent, centering around software investment.

Exports contracted by 2.6 percent, with decreases in exports of LCDs and chemical products. Imports also decreased by 0.7 percent, owing to declines in imports of machinery, natural gas and transport services.

On the production side, manufacturing shrank by 0.9 percent, mainly due to a decrease in electrical & electronic devices such as LCDs and smartphones. Electricity, gas & water supply rose by 4.7 percent, as the proportion of electricity generated by nuclear power with its low unit-generation costs increased. Construction grew by 1.8 percent, led by its expansion of civil engineering. Services expanded by 1.4 percent, as wholesale & retail trade, restaurants & hotels, transportation & storage, finance & insurance, and health & social work all increased.

Year-on-year, the economy expanded 3.2 percent in the third quarter of 2014.

South Korea GDP Expands 0.9% QoQ in Q3

Bank of Korea l Joana Taborda |
10/24/2014 12:13:27 AM