South Korea GDP Grows 2.9% YoY To Beat Initial Estimate


The South Korean economy expanded 2.9 percent year-on-year in the first three months of 2017, beating the advance estimate of a 2.7 percent expansion and outpacing growth for the previous quarter (2.4 percent). It was the highest print in three quarters. The higher GDP growth was mainly explained by further rises in manufacturing and construction, which more than compensated slower growth in services and contraction in utilities.

Manufacturing went up 4.5 percent, well above the 2.7 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 also gained steam in the first quarter (12.2 percent from 10.1 percent). Meanwhile, the decline in agriculture was less pronounced this quarter (-2.4 percent compared to -4.7 percent in the preceding period). Contrastingly, utilities plunged 1.1 percent after a marginal expansion of 0.4 percent in the previous quarter. Services edged down to 1.7 percent growth following a 1.8 percent expansion in the final quarter of 2016.

On a quarterly basis, the economy expanded 1.1 percent, also above initial estimates of 0.9 percent growth and outpacing the 0.5 percent increase for the last three months of 2016.

Mario | mario@tradingeconomics.com
6/1/2017 11:34:28 PM