South Korea Annual GDP Growth Remains at 2%

The South Korean economy advanced 2.0 percent year-on-year in the third quarter of 2019, matching growth for the previous period but coming modestly below expectations of 2.1 percent. Growth slowed for services while picked up for agriculture and manufacturing.
Bank of Korea | Mario | mario@tradingeconomics.com 10/24/2019 10:34:42 AM
On the production side, services advanced at a softer rate but remained growing above average (2.5 percent vs 2.7 percent). Also, construction (-2.7 percent vs -3.6 percent) and utilities (-0.4 percent vs 13.3 percent) contracted. On the other hand, agriculture (5.0 percent vs 0.4 percent in Q2) and manufacturing (1.5 percent vs 0.8 percent) gained steam. 

On the expenditure side, private consumption advanced at a weaker pace of 1.7 percent, compared to 2.0 percent in the previous three months. Meantime, government spending lost some steam (6.8 percent vs 7.0 percent) and gross fixed capital formation fell (1.7 percent vs -3.4 percent). Meanwhile exports grew 1.3 percent (vs 1.2 percent in Q2) and imports 2.0 percent (after showing no growth in Q2).

On a quarterly basis, GDP growth declined to 0.4 percent in the three months to September 2019 from 1.0 percent in the previous quarter, below market expectations of 0.5 percent.

South Korea Annual GDP Growth Remains at 2%