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South Korea Q1 GDP Revised Up To -1.3%

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South Korea's gross domestic product contracted a seasonally adjusted 1.3 percent on quarter in the first three months of 2020, the Bank of Korea said in Tuesday's preliminary reading.

That's an upward revision from last month's advance estimate that suggested a decline of 1.4 percent on quarter following the 1.3 percent quarterly increase in the three months prior.

On a yearly basis, GDP was revised up to 1.4 percent from last month's figure of 1.3 percent following the 2.3 percent increase in the previous three months.

Real gross national income fell 0.8 percent on quarter in Q1.

On the production side, manufacturing fell by 1.0 percent, mainly in transportation equipment, coke and refined petroleum products. Construction expanded by 0.2 percent, owing to increases in civil engineering and specialized construction. Services contracted by 2.4 percent, with decreases in wholesale and retail trade, accommodation and food services, transportation and storage and cultural and other services.

On the expenditure side, private consumption went down by 6.5 percent, as expenditures on goods and services both decreased. Government consumption rose by 1.4 percent, mainly due to increased expenditures on goods. Construction investment grew by 0.5 percent, as building construction and civil engineering increased. Facilities investment grew by 0.2 percent, led by the growth of investment in transportation equipment.

Exports fell 1.4 percent, due to decreases in motor vehicles and machinery despite an increase in semiconductors. Imports were down 3.6 percent, owing to decreased imports of crude oil and motor vehicles.

Nominal GNI dropped 2.0 percent on quarter, decreasing more than nominal GDP (-1.6 percent) as net factor income from the rest of the world fell.

Real GNI sank 0.8 percent on quarter, falling less than real GDP (-1.3%) as the terms of trade improved.

The GDP deflator fell by 0.6 percent year on year.

Also on Tuesday, Statistics Korea said that consumer prices in South Korea were down 0.3 percent on year in May, missing expectations for -0.2 percent and slowing from 0.1 percent in April.

On a monthly basis, consumer prices fell 0.2 percent - matching forecasts and accelerating from the 0.6 percent drop in the previous month.

Core consumer prices were up 0.5 percent on year and 0.1 percent on month after rising 0.1 percent on year and falling 0.2 percent on month in April.

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