According to revised data released by the Bank of Korea (BoK) on 2 December, GDP expanded 4.4% in the third quarter over the same period last year. The reading inched down from the 4.5% advance estimate released on 27 October and came in below the 7.2% expansion recorded in the previous quarter. The deceleration was led by a deteriorating domestic sector, while the external sector improved slightly compared to the last quarter. Total consumption rose 3.3% annually, which was down from the 3.6% rise recorded in the previous quarter. In particular, both private consumption (Q2 2010: +3.7% yoy; Q3 2010: +3.3% yoy) and government spending (Q2 2010: +3.2% yoy; Q3 2010: +2.8% yoy) decelerated over the second quarter. Gross fixed investment grew 6.6% annually, which was slightly 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 in the second quarter to minus 0.5 percentage points in the third, as exports grew at a slower rate than imports. Exports of goods and services increased 11.1% annually (Q2: +14.1% yoy) while imports rose 14.7% (Q2: +19.3% yoy). A quarter-on-quarter comparison corroborates the deceleration suggested by the annual data, as the economy expanded 0.73% over the previous quarter in seasonally adjusted terms (, which was almost half the 1.43% increase observed in the second quarter. According to the Economic Outlook for 2011 released by BoK on 10 December, the Central Bank expects the economy to grow 6.1% in 2010, while moderating to 4.5% growth in 2011 and picking up again slightly in 2012, when GDP is expected to grow at a 4.7% clip.
Revised GDP data confirm deceleration in third quarter
December 2, 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.