South Korea Q4 GDP Expands 4.1% On Year

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South Korea's gross domestic product grew an annualized 4.1 percent on year in the fourth quarter of 2021, the Bank of Korea said on Tuesday.

That beat forecasts for an increase of 3.7 percent on year and was up from 4.0 percent in the previous three months.

On the expenditure side, the growth of facilities investment and government consumption continued while private consumption and exports turned positive.

On the production side, while the decline in construction was sustained, manufacturing and services reversed to an increase. Real GDI grew by 3.0 percent. As the terms of trade worsened due to factors such as a rise in the price of crude oil, real GDI fell short of real GDP.

For all of 2021, gross domestic product expanded 4.0 percent.

On a seasonally adjusted quarterly basis, GDP rose 1.1 percent - again exceeding expectations for 0.9 percent and accelerating from 0.3 percent in the third quarter.

Real gross domestic income (GDI) decreased by 0.5 percent on quarter.

On the expenditure side, private consumption was up 1.7 percent on quarter as expenditures on services increased. Government consumption rose by 1.1 percent, with increased expenditures on goods and health care benefits. Construction investment expanded 2.9 percent, as building construction and civil engineering increased.

Facilities investment contracted 0.6 percent due to a decrease in machinery. Exports increased 4.3 percent, as exports of goods such as semiconductors and coal & petroleum products expanded. Imports were up 4.3 percent, owing to increased imports of crude oil and chemical products.

On the production side, agriculture, forestry and fishing increased 1.3 percent, mainly due to increased crop yields. Manufacturing rose 1.1 percent, mainly due to increases in computer, electronic and optical products and electrical equipment. Electricity, gas and water supply fell 0.8 percent, due to a decrease in electricity.

Construction expanded 2.2 percent, owing to increases in building construction and civil engineering. Services grew 1.3 percent, led by face-to-face services such as wholesale and retail trade, accommodation and food services, transportation and storage and cultural and other services.

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