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South Korea Q3 GDP Gains 1.9% On Quarter

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South Korea's gross domestic product expanded a seasonally adjusted 1.9 percent on quarter in the third quarter of 2020, the Bank of Korea said in Tuesday's advance estimate.

That beat estimates for an increase of 1.7 percent following the 3.2 percent decline in the three months prior.

Real gross income gained 2.5 percent on quarter after shedding 1.9 percent in the second quarter.

On the expenditure side, private consumption contracted by 0.1 percent, as expenditures on semi-durable goods decreased. Government consumption rose by 0.1 percent, mainly due to increased health care benefits.

Construction investment contracted by 7.8 percent, as civil engineering decreased. Facilities investment grew by 6.7 percent, led by the growth of investment in machinery and transportation equipment.

Exports increased by 15.6 percent, as exports of goods such as motor vehicles and semiconductors expanded. Imports were up by 4.9 percent, owing to increased imports of crude oil and chemical products.

On the production side, agriculture, forestry and fishing production increased by 1.8 percent, mainly due to an increase in livestock production.

Manufacturing rose by 7.6 percent, mainly due to an increase in computer, electronic and optical products. Utilities supply fell by 7.4 percent, due to a decrease in electricity. Construction contracted by 5.5 percent, owing to a decrease in civil engineering.

Services grew by 0.7 percent, led by health and social work and finance & insurance.

On a yearly basis, GDP was down 1.3 percent - again beating forecasts for a fall of 1.9 percent following the 2.7 percent drop in the previous three months.

Gross domestic income was up 0.5 percent after sinking 1.9 percent in Q2.

Agriculture, forestry and fishing was down 5.9 percent on year, while manufacturing was down 1.0 percent, utilities gained 7.3 percent, construction fell 2.2 percent and services dipped 1.5 percent.

Exports were down 3.7 percent on year and imports lost 5.3 percent.

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