South Korea GDP Growth at 7-Year High of 1.5%


The South Korean economy expanded 1.5 percent on quarter in the three months to September of 2017, 10 basis points higher than the advance estimate and market expectations of 1.4 percent. It is the highest growth rate since the second quarter of 2010, mainly due to rebounds in manufacturing and construction. Meanwhile, services grew further in the third quarter. In contrast, utilities lost steam and primary activity plunged the most since the second quarter of 2015, revised figures showed.

On the supply side, faster growth was mainly nudged by a 2.9 percent rebound in manufacturing after declining 0.3 percent in Q2 (and vs 2.7 percent in preliminary 3Q estimate), mainly due to an increase in production of semiconductors and chemical products. Construction also rebounded, expanding 1.5 percent vs a 1.3 percent contraction in the previous three months (and vs a revised 1.3 percent growth), boosted by residential building construction. Meanwhile, services grew further to 1.1 percent following a 0.8 percent rise in Q2 (and vs a revised 0.9 percent growth). In contrast, utilities rose at a slower 2.1 percent following 3.8 percent expansion in Q2 (and vs a revised 3.5 percent). Finally, agriculture shrank 3.7 percent (-1.1 percent in Q2), as the volume of vegetables and fruits as well as cattle dropped.

Year-on-year, the economy advanced 3.8 percent, also well above expectations of 3.6 percent; the 3.6 percent preliminary figure; and the 2.7 percent expansion for the second quarter. 

South Korea GDP Growth at 7-Year High of 1.5%


Mario | mario@tradingeconomics.com
11/30/2017 11:19:39 PM