South Korea's second quarter GDP rises 0.6% on-quarter
- 6 years ago
South Korea's central bank has released its revised data on the nation's second quarter GDP growth.
Figures show the economy slowed down compared to Q1.
Kim Hyesung reports.
South Korea's economy expanded at a slower than expected pace in the second quarter.
According to the Bank of Korea on Tuesday,... the country's GDP for the April-to-June period rose zero-point-six percent on-quarter,... slower than the first quarter's one percent growth.
"Second quarter growth is zero-point-one percentage points lower than our earlier estimate released in July. While facilities investment has been revised up zero-point-nine percent in the second quarter, construction investment, exports and imports have been revised down."
Although facilities investment were higher than the earlier estimate, it still tumbled five-point-seven percent in the second-quarter, marking the largest on-quarter drop since the first quarter of 2016, due to falling investment in machinery and transportation equipment.
Construction investment also contracted around two percent from one-point-eight percent growth in the first quarter as investment in residential buildings decreased.
Exports, which account for nearly half of South Korea's GDP, rose zero-point-four percent on-quarter, slowing from a four-point-four percent rise in the first quarter, while imports retreated three percent.
Semiconductor exports increased but autos, home appliances and ships dropped.
Private consumption rose zero-point-three percent as consumers spent more on clothes and medical services, but it was still slower than first quarter's zero-point-seven percent.
"When you look at contributions to GDP growth, domestic demand turned to a minus in the second quarter. The contribution of private consumption dropped zero-point-one percentage points on quarter. Facilities and construction investment have also contracted as expected. These data show domestic demand is likely to continue slowing down."
Government spending climbed zero-point-three percent.
Real gross national income shrank by one percent, as import prices were higher than export prices.
"On-year, GDP expanded two-point-eight percent in the second quarter, on par with the first quarter. The BOK says to reach its growth target of two-point-nine percent for 2018, the local economy has to expand by a range of zero-point-nine-one to one-point-zero-three percent in the remaining two quarters.
Kim Hyesung, Arirang News."
Figures show the economy slowed down compared to Q1.
Kim Hyesung reports.
South Korea's economy expanded at a slower than expected pace in the second quarter.
According to the Bank of Korea on Tuesday,... the country's GDP for the April-to-June period rose zero-point-six percent on-quarter,... slower than the first quarter's one percent growth.
"Second quarter growth is zero-point-one percentage points lower than our earlier estimate released in July. While facilities investment has been revised up zero-point-nine percent in the second quarter, construction investment, exports and imports have been revised down."
Although facilities investment were higher than the earlier estimate, it still tumbled five-point-seven percent in the second-quarter, marking the largest on-quarter drop since the first quarter of 2016, due to falling investment in machinery and transportation equipment.
Construction investment also contracted around two percent from one-point-eight percent growth in the first quarter as investment in residential buildings decreased.
Exports, which account for nearly half of South Korea's GDP, rose zero-point-four percent on-quarter, slowing from a four-point-four percent rise in the first quarter, while imports retreated three percent.
Semiconductor exports increased but autos, home appliances and ships dropped.
Private consumption rose zero-point-three percent as consumers spent more on clothes and medical services, but it was still slower than first quarter's zero-point-seven percent.
"When you look at contributions to GDP growth, domestic demand turned to a minus in the second quarter. The contribution of private consumption dropped zero-point-one percentage points on quarter. Facilities and construction investment have also contracted as expected. These data show domestic demand is likely to continue slowing down."
Government spending climbed zero-point-three percent.
Real gross national income shrank by one percent, as import prices were higher than export prices.
"On-year, GDP expanded two-point-eight percent in the second quarter, on par with the first quarter. The BOK says to reach its growth target of two-point-nine percent for 2018, the local economy has to expand by a range of zero-point-nine-one to one-point-zero-three percent in the remaining two quarters.
Kim Hyesung, Arirang News."