South Korea Economy Grows 2.7% YoY in Q3

South Korea's economy expanded 2.7 percent year-on-year in the third quarter of 2016, lower than a 3.3 percent expansion in the previous period, but above market expectations consensus of 2.6 percent. Private consumption slowed, while investment and government spending expanded at a faster pace, preliminary figures showed.

On the expenditure side, private consumption expanded by 2.6 percent (+3.3 percent in Q2) and government consumption grew by 4 percent (+3.6 percent in Q2). Fixed investment expanded by 5.4 percent (from +5.3 percent in Q2): Construction investment was up by 11.9 percent (+10.8 percent in Q2); while facilities investment contracted by 4.5 percent (+2.7 percent in Q2). Exports expanded by 2.9 percent (+1.9 percent in Q2) and imports also rose by 4.6 percent (+3.3 percent in Q2).

On the production side, manufacturing increased by 0.7 percent (+2.2 percent in Q2). Electricity, gas and water supply rose by 6.3 percent (+4.7 percent in Q2). Construction grew by 11.3 percent (+12.4 percent in Q2). Services expanded by 2.8 percent (+3 percent in Q2). By contrast, agriculture, forestry and fishing shrank 3.9 percent (+1.5 percent in Q2).

Compared with the previous quarter, the economy expanded by 0.7 percent, easing slightly from a 0.8 percent growth in the previous period but better than market expectations of a 0.6 percent expansion.

South Korea Economy Grows 2.7% YoY in Q3

The Bank of Korea | Joana Ferreira |
10/24/2016 11:27:00 PM