South Korea's gross domestic product climbed a seasonally adjusted 0.8 percent in the first quarter of 2013 compared to the previous three months, the Bank of Korea said in Friday's revised reading - the fastest rate of gain in two years.
The headline figure was down slightly from April's preliminary reading for an increase of 0.9 percent on quarter - although it was still up from the 0.3 percent gain in the fourth quarter. It marked the fastest growth rate since the first quarter of 2011, when GDP was up 1.3 percent.
On the production side, manufacturing added 1.3 percent owing to the increase in sub-sectors such as petroleum, coal and chemical products, electrical and electronic devices and ships, the bank said.
Construction climbed 4.0 percent, led by building construction and civil engineering. Services gained 0.7 percent, owing to gains in transport and storage, information and communication and health & social work sectors.
On the expenditure side, private consumption shed 0.4 percent, as expenditures on goods such as durables and semi-durables declined. Facilities investment jumped 2.6 percent, led by investment in machinery and transport equipments.
Construction investment climbed 4.1 percent, centering on residential building construction and civil engineering.
Exports grew by 3.0 percent and imports by 2.5 percent, led respectively by exports of petrochemical products and imports of electrical machine and petrochemical products.
On a yearly basis, GDP was unrevised - up 1.5 percent for the third straight quarter.
On the production side, the manufacturing sector added 1.0 percent on year, due to growth in sub-sectors such as electrical and electronic devices and petroleum, coal and chemical products. Construction gained 1.1 percent on year, led by residential building construction and civil engineering. Services were up 1.8 percent on year.
On the expenditure side, private consumption added 1.5 percent on year, buoyed by increased expenditures on durables such as audio-visual equipment and on services.
Facilities investment plummeted 11.9 percent on year, as investment in machinery such as semiconductor manufacturing equipment and communication devices decreased. Construction investment gathered 2.4 percent on year, as both buildings construction and civil engineering increased.
Exports jumped 3.4 percent, centering on exports of mobile phones and petrochemical products, and imports grew by 1.8 percent owing to increases, for example, in those of petrochemical products and electrical machinery.
Nominal gross national income climbed 1.7 percent on quarter, while gross national income expanded 0.8 percent on quarter.
The gross saving ratio was 31.4 percent, up 1.1 percentage points on quarter, as the increase in nominal gross national disposable income outpaced that of nominal final consumption expenditures.
The gross domestic investment ratio was 26.8 percent, 0.2 of a percentage point higher than in the previous quarter, due mainly to an increase in construction investment.
In March, the Finance Ministry lowered its growth forecast for this year to 2.3 percent from 3 percent projected earlier. South Korea's economic growth plunged to a three-year low in 2012 with the gross domestic product growing by just 2 percent.
by RTTNews Staff Writer
For comments and feedback: editorial@rttnews.com