South Korea Economy Grows at 9-Year Low

The South Korean economy expanded 2.0 percent year-on-year in the three months to September 2018, slowing from a 2.8 percent growth in the previous quarter and below estimates of 2.2 percent. It was the weakest growth rate in nine years, as construction plunged 7.8 percent.

On the production side, softer growth was observed in manufacturing (2.8 percent vs 3.2 percent in Q2), services (2.4 percent vs 3.0 percent), and utilities (2.2 percent vs 3.9 percent). In addition, construction shrank 7.8 percent, more than a 1.6 percent contraction in the previous period.

On the expenditure side, softer growth was mainly explained by a 6.5 percent plunge in gross fixed capital formation (vs -1.3 percent). Also, final consumption grew 3.2 percent, after rising 3.3 percent in the second quarter of the year, driven by a slowdown in private consumption (2.6 percent vs 2.8 percent) and government spending (4.7 percent vs 4.8 percent in Q2). Meantime, exports grew 3.1 percent (vs 4.8 percent) and imports dropped 1.2 percent (vs +2.0 percent).

On a quarterly basis, the economy advanced 0.6 percent quarter-on-quarter in the three months to September 2018, the same pace as in the previous period and slightly below market expectations of 0.7 percent.

South Korea Economy Grows at 9-Year Low

Mario |
10/25/2018 9:23:42 AM