In the fourth quarter, GDP expanded 4.8% over the same period the previous year. The result represented a slight improvement compared to the 4.4% expansion recorded in the previous quarter and was also a tad above market expectations, which saw the economy expanding 4.6% in the fourth quarter. The fourth quarter reading was driven by a strong external sector, while the contribution of domestic demand deteriorated compared to the previous quarter. Total consumption increased 3.3% annually, up from the 3.2% rise recorded in the previous quarter. Government spending picked up compared to the previous quarter (Q3 2010: +2.8% yoy; Q4 2010: +3.9% yoy), which compensated for weaker private consumption growth (Q3 2010: +3.3% yoy; Q4 2010: +3.2% yoy). Gross fixed investment grew 2.1% annually, which marked a significant moderation compared to the 6.6% expansion recorded in the third quarter. Meanwhile, the net contribution from the external sector to overall growth swung from minus 0.5 percentage points to plus 1.2 percentage points, as exports outpaced imports. Exports of goods and services increased 14.9% annually (Q3: +11.1% yoy) while imports rose 14.6% (Q3: +14.7% yoy). A quarter-on-quarter comparison corroborates the positive result suggested by the annual data, as the economy expanded 1.73% over the previous quarter in seasonally adjusted terms, up from the 1.13% increase observed in the third quarter. On a full-year basis, the economy expanded 6.1% in 2010, which was up from the 0.2% increase recorded in 2009 and was in line with the Central Bank's expectations. The result represented the strongest annual expansion in seven years. The Central Bank expects GDP growth to moderate to 4.5% in 2011, before picking up again in 2012, when the economy is expected to grow at a 4.7% clip.
Economy strengthens in the fourth quarter
January 25, 2011
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Korea Economic News
October 25, 2016
The Korean economy slowed down in the third quarter of this year, expanding at the weakest pace in over a year.
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
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.