South Korea GDP Growth at 7-Year High of 1.4%



The South Korean economy expanded 1.4 percent on quarter in the three months to September of 2017, well above estimates of a 1.0 percent expansion and a 0.6 percent rise for Q2. It is the highest growth rate in seven years, mainly due to rebounds in manufacturing and construction. Meanwhile, utilities lost steam and primary activity plunged the most since the second quarter of 2015, preliminary estimates showed.

On the supply side, faster growth was mainly triggered by a 2.7 percent rebound in manufacturing (-0.3 percent in Q2), mainly due to an increase in production of semiconductors and chemical products. Construction also rebounded, expanding 1.3 percent vs a 1.3 percent contraction in the previous three months, boosted by residential building construction. Meanwhile, services grew 0.9 percent (0.8 percent in Q2). In contrast, utilities rose at a slower 3.5 percent (3.8 percent in Q2) and agriculture shrank 6.5 percent (-1.1 percent in Q2), as the volume of vegetables and fruits as well as cattle dropped. 

Year-on-year, the economy advanced 3.6 percent, also well above expectations of 3.2 percent and the 2.7 percent figure for the second quarter.

South Korea GDP Growth at 7-Year High of 1.4%


Mario | mario@tradingeconomics.com
10/26/2017 11:10:53 AM