In the first quarter, GDP expanded 2.8% over the same period the previous year. The reading was below the 3.3% increase tallied in the previous quarter but matched market expectations. The quarterly reading reflected a moderation in the contribution from the external sector to overall growth, while domestic demand improved somewhat. Total consumption increased 2.2% annually in Q1, up from the 1.3% rise recorded in the previous quarter, as both private and government consumption strengthened over the previous quarter. In addition, gross fixed investment rebounded from a 1.8% contraction in the fourth quarter to a 5.1% expansion in the first. Meanwhile, the external sector's net contribution to overall growth fell from plus 1.6 percentage points in Q4 to plus 0.5 percentage points in Q1, as imports accelerated more than exports. Exports of goods and services increased 5.0% annually (Q4: +4.4% yoy), while imports rose 4.6% (Q4: +1.6% yoy). A quarter-on-quarter comparison, however, suggests stronger growth than the annual data, partially due to a base effect. The economy expanded 0.91% over the previous quarter in seasonally adjusted terms, nearly tripling the weak 0.33% expansion in the fourth quarter. The Bank of Korea expects the economy to grow 3.5% this year and to accelerate to a 4.2% expansion in 2013.
Economic growth slows on the back of weaker external sector
May 15, 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.