South Korea GDP Expands 0.7% On Quarter In Q2

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South Korea's gross domestic product climbed a seasonally adjusted 0.7 percent on quarter in the second quarter of 2021, the Bank of Korea said in Tuesday's advance estimate.

That was in line with expectations following the 1.7 percent growth in the previous three months.

Real gross domestic income (GDI) decreased by 0.6 percent compared to the previous quarter.

On the expenditure side, private consumption was up by 3.5 percent, as expenditures on semi-durable goods (e.g. clothing) and services (e.g. recreation & culture, restaurants & accommodation services) increased.

Government consumption rose by 3.9 percent, with increased expenditures on health care benefits.

Construction investment contracted by 2.5 percent, as building construction and civil engineering both decreased. Facilities investment grew by 0.6 percent, driven by an increase in transportation equipment.

Exports fell by 2.0 percent, due to decreases in motor vehicles and LCDs. Imports were up by 2.8 percent, owing to increased imports of basic metals and chemical products.

On the production side, agriculture, forestry & fishing decreased by 13.6 percent, as crop yields declined.

Manufacturing fell by 1.2 percent, due to a decrease in transportation equipment. Electricity, gas & water supply declined by 3.5 percent, due to a decrease in electricity.

Construction fell by 1.4 percent, owing to a decrease in civil engineering. Services increased by 1.9 percent, mainly in transportation & storage and cultural & other services.

On an annualized basis, GDP was up 5.9 percent - just shy or forecasts for an increase of 6.0 percent but up from 1.9 percent in the three months prior.

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