In the second quarter, GDP expanded 3.4% over the same period the previous year. The result represented a moderation compared to the 4.2% expansion recorded in the previous quarter and slightly undershot market analysts' expectations, which had the economy expanding 3.5% in the second quarter. The second quarter reading implied a moderation in the contribution to growth from the external sector, while domestic demand improved compared to the same period of the previous year. Total consumption increased 2.9% annually, up from the 2.5% rise recorded in the previous quarter. Both private consumption (Q1: +2.8%; Q2: +3.1%) and government consumption (Q1: +1.5%; Q2: +2.2%) improved compared to the previous three-month period, while fixed investment mirrored the result seen in Q1 and contracted 2.2%. Meanwhile, the net contribution from the external sector to overall growth dropped from 3.3 percentage points to plus 1.7 percentage points, as exports moderated notably in the second quarter. Exports of goods and services increased 10.2% annually (Q1: +16.8% yoy) while imports rose 7.9% (Q1: +10.8% yoy). A quarter-on-quarter comparison corroborates the moderation suggested by the annual data, as the economy expanded 0.84% over the previous quarter in seasonally adjusted terms, down from the 1.32% increase observed in the first quarter. That said, the Central Bank recently revised its growth forecast for this year down from 4.5% to the current 4.3%. Next year, the economy is expected to grow at a 4.6% clip, which is also down from a previously anticipated 4.8%.
Growth moderates in second quarter
July 28, 2011
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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.