South Korea Q2 GDP Growth at Near 2-Year High

South Korea’s GDP advanced 1.1 percent on quarter in the three months to June 2019, after a 0.4 percent contraction in the previous quarter and above market consensus of a 1.0 percent expansion. It was the strongest growth rate since the third quarter of 2017, as manufacturing and construction output rebounded and utilities surged 8.3 percent.

On the production side, output rebounded in manufacturing (1.8 percent vs -3.3 percent in Q1) and construction (1.4 percent vs -1.0 percent). Additionally, utilities surged 8.3 percent after showing no growht in the first quarter of the year. On the other hand, services activity expanded 0.6 percent, slowing from a 0.8 percent in the prior quarter; and agriculture, forestry and fishing shrank 3.7 percent, after expanding 4.7 percent in the previous period. 

On the expenditure side, final consumption expenditure rose 1.1 percent (vs +0.2 percent in Q1), boosted by both government expenditure (2.5 percent vs 0.4 percent) and private consumption (0.7 percent vs 0.1 percent). Gross fixed capital formation went up 1.3 percent, rebounding from a 2.8 percent contraction in Q1. Meantime, exports climbed 2.3 percent (vs -3.2 percent in Q1) and imports 3.0 percent (vs -3.4 percent).

On an annual basis, the economy expanded 2.1 percent year-on-year, faster than a 1.7 percent growth in the previous quarter and beating market expectations of 2.0 percent.

South Korea Q2 GDP Growth at Near 2-Year High

Bank of Korea | Mario |
7/25/2019 8:30:49 AM