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South Korean GDP growth weakest since Q3 2015

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Staff writer ▼ | April 27, 2016
The South Korean GDP expanded 2.7 percent year-on-year in the first quarter of 2016, slowing from a 3.1 percent growth reported in the previous three months, preliminary estimates showed.
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Asia   The weakest expansion since the third quarter of 2015
It is the weakest expansion since the third quarter of 2015 as private consumption and exports slowed while facilities investment declined.

In the March quarter, final consumption expenditure grew by 2.6 percent year-on-year after registering a 3.4 percent expansion in the December quarter 2015. Private consumption rose 2.1 percent, slowing from a 3.3 percent increase in the preceding quarter.

Public spending advanced 4.5 percent, up from 3.9 percent in the previous three months. Gross fixed capital formation expanded 3.1 percent, slowing from a 5.4 percent rise in the fourth quarter last year.

While construction investment rose 8.7 percent (higher from a 7.5 percent growth in the December quarter), facilities investmemt declined by 3.0 percent (from a 3.9 percent growth in the three months to December).

Intellectual property products grew by 0.7 percent, slowing from 2.1 percent in the previous period. Exports increased by 0.1 percent after posting a 2.5 percent rise in the preceding quarter. Import grew at a faster 1.4 percent, following a 6.1 percent expansion in the fourth quarter.

On the production side, construction sector expanded the most by 9.4 percent (from +7.5 percent), followed by electricity, gas & water supply (+6.3 percent from +6.7 percent), services (+2.5 percent from +2.7 percent) and manufacturing (+1.8 percent from +2.4 percent).

In contrast, agriculture, forestry & fishing contracted by 3.0 percent, compared to a 5.0 percent decline in the preceding quarter.

On a quarter-on-quarter basis, the economy grew by 0.4 percent, slowing from a 0.7 percent expansion in the previous quarter. It is the weakest growth since the second quarter of 2015.