South Korea GDP Growth Slows to 9-Year Low in Q3


The South Korean economy expanded 2.0 percent year-on-year in the three months to September 2018, slowing from a 2.8 percent growth in the previous quarter and in line with market expectations, final data showed. It was the weakest growth rate since the third quarter of 2009.

On the production side, construction plunged 8.1 percent, after a 1.6 percent contraction in the previous quarter (vs a preliminary -7.8 percent) and agriculture declined 2.4 percent compared to a 1.2 percent expansion in the second quarter of the year. Additionally, slower growth was recorded in manufacturing (2.8 percent vs 3.2 percent in Q2), utilities (1.9 percent vs 3.9 percent in Q2 vs preliminary 2.2 percent), and services (2.4 percent vs 3.0 percent in Q2).

On the expenditure side, gross fixed capital formation shrank by 6.6 percent (vs -1.3 percent in Q2 vs preliminary -6.5 percent), with construction plunging 8.9 percent. Also, final consumption lost steam (3.0 percent vs 3.3 percent in Q2 vs preliminary 3.2 percent), as government expenditure (4.6 percent vs 4.8 percent in Q2 vs preliminary 4.7 percent) and private spending (2.5 percent vs 2.8 percent in Q2 vs preliminary 2.6 percent) slowed. Meantime, exports grew 3.1 percent, while imports declined 1.8 percent.

On a quarterly basis, the economy advanced 0.6 percent quarter-on-quarter in the three months to September 2018, the same pace as in the previous period and also matching market consensus and the preliminary reading.


South Korea GDP Growth Slows to 9-Year Low in Q3


Bank of Korea | Mario | mario@tradingeconomics.com
12/4/2018 10:34:22 AM