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S. Korea Growth Slows As Estimated In Q3

southkoreanflag 051010 02dec19

South Korea's economic growth slowed as initially estimated in the third quarter on weaker construction activity, revised data from the Bank of Korea showed Tuesday.

Gross domestic product grew 0.4 percent sequentially, in line with advance estimate, but slower than the 1 percent expansion seen in the second quarter.

On a yearly basis, GDP growth held steady at 2 percent in the third quarter.

Last week, the central bank had forecast 2 percent growth for this year and the lower 2 percent level for 2020. The bank had forecast adjustment in construction investment to continue.

The production-side breakdown of GDP showed that growth was driven by manufacturing and services. Manufacturing output advanced 2.4 percent sequentially and services output gained 0.6 percent. Farm output also grew 0.6 percent.

Meanwhile, electricity, gas and water supply shrank sharply by 13.6 percent and construction contracted 4.9 percent.

On the expenditure-side, private spending rose 0.2 percent reflecting higher expenditure on durable goods. Likewise, government consumption climbed 1.4 percent mainly due to increased health care benefits.

On the other hand, gross fixed capital formation fell 2.7 percent due to a sharp 6 percent decline in construction investment.

Exports were up 4.6 percent on higher shipments of semiconductors and automobiles. Imports advanced 1.2 percent owing to increased demand for transportation equipment.

Real gross national income increased 0.6 percent in the third quarter compared to the previous quarter versus 0.2 percent rise in the prior period.

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