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Asian Economic News

South Korea GDP Revised Down TO 2.6% In Q3

By RTTNews Staff Writer   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

South Korea's gross domestic product expanded 2.6 percent on year in the third quarter of 2016, the Bank of Korea said in Friday's final revision.

That's a downward move from the October 25 preliminary reading that suggested an increase of 2.7 percent. It's also down from 3.3 percent in the second quarter.

On a seasonally adjusted annualized basis, GDP was revised down to 0.6 percent from the initial read of 0.7 percent. GDP was up 0.8 percent in Q2.

Real gross national income fell 0.4 percent on quarter, while nominal gross national income added 0.2 percent.

On the production side, manufacturing shrank 0.9 percent, due to decreases in production of transport equipment and electronic and electrical equipment, the bank said. Construction added 3.7 percent, led by growth both in residential and non-residential building construction.

Services expanded 0.9 percent, as health and social work and information and communication increased.

On the expenditure side, private consumption expanded 0.5 percent as expenditures on non-durable goods and services increased. Government consumption gained 1.4 percent, with an increase in health insurance benefits.

Construction investment was up 3.5 percent, led by growth both in residential and non-residential building construction. Facilities investment gained 0.2 percent.

Exports expanded 0.6 percent, with increases in exports of semiconductors and chemical products. Imports climbed 2.8 percent, as imports of machinery and overseas consumption by residents increased.

On the production side, the manufacturing sector expanded 0.8 percent on year, led by growth in precision equipment and chemical products.

Construction increased 10.6 percent on year, as building construction and civil engineering expanded. Services picked up 2.7 percent on year.

On the expenditure side, private consumption rose 2.7 percent on year, with increases in expenditures on non-durable goods and services. Government consumption jumped 4.0 percent, mainly due to health insurance benefits.

Construction investment spiked 11.4 percent, led by growth in residential and non-residential building construction. Facilities investment fell 4.2 percent on year, as both transport equipment and machinery investment decreased.

Exports jumped 2.7 percent, owing to increases in semiconductors and chemical products. Imports advanced 4.9 percent, with increases in imports of crude oil and overseas consumption by residents.

The GDP deflator gained 1.2 percent on year in Q3. The gross saving ratio was 34.8 percent, down 0.7 percentage points on quarter, as the nominal final consumption expenditure increased.

The gross domestic investment ratio was 29.9 percent, 1.2 percentage point higher than in Q2.

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