South Korea 3Q GDP Growth Revised Up to 3.8% YoY

The South Korean economy expanded 3.8 percent year-on-year in the third quarter of 2017 according to the revised estimate, up from the 3.6 percent preliminary figure; comfortably surpassing the 2.7 percent expansion in Q2; and above the 3.6 percent print expected by consensus. It is the higher growth pace since March of 2014. Faster GDP expansion was explained by further growth in manufacturing and services, more than offsetting slower expansion in construction and utilities.

By economic activity, manufacturing went up a sound 6.6 percent, well above the 3.2 percent growth in the previous quarter. Services (+2.4 percent vs 1.9 percent) also gained steam in the third quarter. In contrast, construction advanced at a 7.0 percent pace in the three months to September of 2017, moderately below the 7.7 percent expansion of the previous quarter. It was the second straight quarterly slowdown. Utilities also lost steam in the third quarter (+1.5 percent vs 2.5 percent).

On the expenditure side, government consumption expanded further in the third quarter (4.6 percent vs 3.1 percent), while private spending rose to a 2.5 percent growth (vs 2.3 percent in the previous three months). In contrast, gross fixed capital formation lost steam for a second straight quarter, rising 9.2 percent after a 9.6 percent advance in Q2: construction and facilities grew less, while intellectual property products expanded at a faster clip. Meanwhile, exports advanced 5.0 percent (vs 0.0 percent in Q2) and imports 8.5 percent (vs 6.4 percent).

On a quarterly basis, the economy expanded 1.5 percent, also upwardly revised from the 1.4 percent preliminary figure and from the 0.6 percent expansion for the previous quarter. 

South Korea 3Q GDP Growth Revised Up to 3.8% YoY

Mario |
11/30/2017 11:25:40 PM