In the fourth quarter, GDP expanded 3.4% over the same period the previous year. The result was an inch below both the 3.5% increase in the previous quarter and market analysts' expectations, which had the economy expanding at the same 3.5% pace. In the full year 2011, GDP expanded 3.6%, which was well below the strong 6.2% increase in 2010. The fourth quarter reading reflected a moderation in the contribution from the external sector to overall growth, while domestic demand improved somewhat on the back of a positive contribution from inventories. Total consumption increased 1.4% annually, down from the 2.3% rise recorded in the previous quarter, as both private consumption and government consumption moderated. Gross fixed investment deteriorated further, from a 2.0% contraction in the third quarter to a 3.0% drop in the fourth. However, total investment - which includes changes in inventories - accelerated to a 3.0% expansion, up from the 0.1% rise seen in the previous quarter. Meanwhile, the external sector's net contribution to overall growth fell from plus 2.2 percentage points in Q3 to plus 1.7 percentage points in Q4. Exports of goods and services increased 5.2% annually (Q3: +9.6% yoy) while imports rose a softer 2.3% (Q3: +6.0% yoy). A quarter-on-quarter comparison corroborates the moderation suggested by the annual data, as the economy expanded 0.35% over the previous quarter in seasonally adjusted terms, down from the 0.81% increase observed in the third quarter. The Bank of Korea expects the economy to grow 3.7% this year and to accelerate to a 4.2% expansion in 2013.
Economic growth moderates in 2011
January 26, 2012
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Korea Economic News
October 13, 2016
At its 13 October monetary policy meeting, the Bank of Korea (BoK) announced that it will hold the base rate constant at a record low of 1.25%, which was largely in line with market expectations.
October 5, 2016
In September, consumer prices rose 0.6% over the previous month, which contrasted the 0.1% decrease in August and overshot the 0.2% increase the markets had expected.
October 3, 2016
Korea’s Customs Services reported that exports totaled USD 40.9 billion in September, which represented a 5.9% contraction over the USD 43.4 billion recorded in the same month last year.
September 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) rose from 74 points in September to 75 points in October.
September 30, 2016
In August, industrial production accelerated and expanded 2.3% year-on-year, which was up from both the 1.6% increase registered in July and the 1.6% rise the markets had expected.