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South Korea GDP Rises 3.6% On Year In Q2

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South Korea's gross domestic product expanded 3.6 percent on year in the second quarter of 2014, the Bank of Korea said in Thursday's preliminary estimate.

That beat forecasts for an increase of 3.3 percent, although it slowed from the 3.9 percent gain in the first quarter.

On a seasonally adjusted annualized quarterly basis, GDP expanded 0.6 percent - well above expectations for an increase of 0.1 percent but down from 0.9 percent in the previous three months.

Real gross domestic income gained 1.3 percent on quarter.

On the expenditure side, private consumption contracted 0.3 percent as expenditures on both goods and services decreased. Construction investment grew by 0.6 percent, centering on building construction.

Facilities investment expanded 1.3 percent, with increases in both transport equipment and machinery investment. Intellectual property products investment fell 4.2 percent, due to a decline in foreign payments related to patents, the central bank said.

Exports grew by 1.9 percent, with increases in LCD and chemical products. Imports added 0.8 percent, owing to expansions in imports of vehicles and in overseas consumption by residents.

On the production side, agriculture, forestry and fishing fell 4.1 percent mainly due to decreases in the numbers of hogs and Korean beef cattle raised. Manufacturing expanded 1.1 percent, centering on the production of chemical products, vehicles, and LCD products.

Electricity, gas and water supply contracted 2.3 percent, as demand for heating and cooling decreased owing to the mild weather. Construction gained 0.4 percent, centering on growth in building construction.

Services grew 0.7 percent, as health and social work and business activities increased, despite declines in restaurants and hotels and transportation and storage.

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