In the second quarter, GDP expanded 2.4% over the same period last year. The reading was below the 2.8% increase tallied in the previous quarter and missed market expectations of a 2.6% growth rate. The quarterly reading reflected a moderation in domestic demand, while the contribution from the external sector to overall economic growth improved over the previous quarter. Total consumption increased 1.8% annually in Q2, down from the 2.2% rise recorded in the previous quarter, as both private and government consumption weakened over the previous quarter. Furthermore, gross fixed investment dipped 1.5% in the second quarter, contrasting the 4.6% expansion seen in the first. Meanwhile, the external sector's net contribution to overall growth rose from plus 0.4 percentage points in Q1 to plus 1.4 percentage points in Q2, as exports outpaced imports. Exports of goods and services increased 3.2% annually (Q1: +4.7% year-on-year), while imports rose 0.7% (Q1: +4.4% yoy). A quarter-on-quarter comparison corroborates the slowdown suggested by the annual data. The economy expanded 0.38% over the previous quarter in seasonally adjusted terms, below the 0.86% expansion recorded in the first quarter.
Economic growth slows in Q2
July 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.