South Korea Annual GDP Growth Revised to 2.8%


The economy of South Korea advanced 2.8 percent year-on-year in the second quarter of 2018, matching the 2.8 percent growth recorded for the previous quarter and slightly below the 2.9 percent preliminary expansion and the final consensus estimate.

On the production side, manufacturing gained steam, expanding 3.2 percent after a 2.7 percent growth in the previous quarter (and vs preliminary 3.3 percent). Also, utilities rebounded sharply, advancing 3.9 percent following a 1.7 percent drop in the first quarter (and vs prel 4.1 percent). Meantime, primary activity moderated (+1.2 percent vs +4.1 percent and vs prel +1.5 percent) and services expanded at a slightly softer pace of 3.0 percent (vs +3.2 percent in Q1 and vs prel +3.1 percent). In contrast, construction fell into contraction and was revised sharply up (-1.6 percent vs +0.2 percent and prel -0.8 percent).

On the expenditure side, exports expanded at a faster pace (+4.8 percent vs +1.6 percent and vs prel +5.2 percent), while imports advanced less (+2.0 percent vs +4.2 percent and vs prel +2.4 percent), adding to overall growth. In contrast, gross fixed formation contracted 1.3 percent after expanding 3.7 percent in the previous quarter (and vs prel -1.1 percent), with construction slipping 1.5 percent (vs +1.8 percent in Q1 and prel -0.7 percent) and facilities dropping 3.0 percent (vs +7.3 percent and vs prel -3.9 percent). In addition, final consumption grew at a softer clip of 3.3 percent (vs +4.0 percent), with private spending rising 2.8 percent (vs +3.5 percent) and public spending increasing 4.8 percent (vs +5.8 percent), all unchanged from preliminary estimates. 

On a quarterly basis, the economy expanded 0.6 percent quarter-on-quarter after a 1 percent expansion in the previous period and below both market expectations and the preliminary print of 0.7 percent.

South Korea Annual GDP Growth Revised to 2.8%


Bank of Korea | Mario | mario@tradingeconomics.com
9/4/2018 11:08:05 AM