In the third quarter, gross domestic product (GDP) expanded 4.5% over the same period last year. The result was down from the 7.2% expansion recorded in the previous quarter but was broadly in line with market expectations, which saw the economy expanding 4.4% in the third quarter. The deceleration over the previous quarter was driven by a deterioration in the domestic sector, while the contribution of the external sector improved slightly compared to the last quarter. Total consumption increased 3.2% annually, down from the 3.6% rise recorded in the previous quarter, as both private consumption (Q2 2010: +3.7% yoy; Q3 2010: +3.3% yoy) and government spending (Q2 2010: +3.2% yoy; Q3 2010: +2.9% yoy) decelerated over the second quarter. That said, gross fixed investment grew 7.0% annually, which was up from the 6.4% expansion recorded in the second quarter. Meanwhile, the net contribution from the external sector to overall growth stepped up from minus 0.7 percentage points to minus 0.6 percentage points, as exports slowed less than imports. Exports of goods and services increased 11.3% annually (Q2: +14.1% yoy) while imports rose 15.0% (Q2: +19.3% yoy). A quarter-on-quarter comparison corroborates the deceleration suggested by the annual data, as the economy expanded 0.75% over the previous quarter in seasonally adjusted terms, which virtually halved the 1.43% increase observed in the second quarter. The Central Bank raised its forecast for the year from its July's 5.9% estimate and now expects the economy to grow 6.0% in 2010.
GDP growth slows in third quarter
October 27, 2010
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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.