Global Economic News

South Korea GDP Jumps 1.1% In Q2

South Korea's gross domestic product climbed a seasonally adjusted 1.1 percent in the second quarter of 2013 compared to the previous three months, the Bank of Korea said in Thursday's preliminary reading.

That blew away forecasts for an increase of 0.3 percent following the 0.8 percent gain in the first quarter.

In a statement accompanying the data, the bank said "facilities investment declined, but private consumption swung to growth."

Real gross domestic income gained 2.7 percent on quarter.

On the expenditure side, private consumption was up 0.6 percent as expenditures on durable goods and services increased.

Construction investment grew 3.3 percent, with increases in both building construction and civil engineering. Facilities investment shed 0.7 percent, owing to a decrease in investment of transport equipment.

Exports jumped 1.5 percent and imports added 1.0 percent, centering on exports of video, audio and communication equipment and imports of semiconductors and electronic components.

On the production side, agriculture, forestry and fishing climbed 2.0 percent centering on cultivation and fishing.

Manufacturing collected 0.8 percent with increased production of smartphones, semiconductors and petrochemicals.

Electricity, gas and water supply dropped 1.4 percent, led by a decline in nuclear power generation.
Construction spiked 1.5 percent, centering on residential building construction.

Services added 0.9 percent, as gains in wholesale and retail trade, restaurants and hotels, financial intermediation and health and social work offset declines in transport and storage, information and communication, the bank said.

On a yearly basis, GDP jumped 2.3 percent - also beating expectations for an increase of 1.6 percent after rising 1.5 percent in the three months prior.

by RTTNews Staff Writer

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