South Korea Annual GDP Growth Beats Forecasts In Q1


The South Korean economy expanded 2.7 percent year-on-year in the first three months of 2017, beating expectations of a 2.6 percent expansion and outpacing growth for the previous quarter (2.4 percent). It was the highest print in three quarters. Accelerating GDP was mainly explained by further growth in manufacturing, which more than compensated slower growth in services and contraction in utilities.

Manufacturing went up 4.4 percent, above the 2.3 percent in the previous quarter and significantly outpacing the 2.3 percent annual growth for the whole 2016 and the 1.8 percent expansion for 2015.

Construction gained some steam in the first quarter (10.8 percent from 10.5 percent), expanding at the fastest pace since the second quarter of 2016. Meanwhile, the decline in agriculture was less pronounced this quarter (-2.0 percent compared to -2.9 percent in the preceding period). Contrastingly, utilities plunged 2.0 percent after growing 3.6 percent in the previous quarter. 

On a quarterly basis, the economy expanded 0.9 percent, also above estimates of 0.7 percent growth and outpacing the 0.5 percent increase for the last three months of 2016.

Mario | mario@tradingeconomics.com
4/26/2017 11:24:21 PM