South Korean economic growth slows slightly in Q3

South Korea’s real GDP for the third quarter grew at a slower pace as compared to the second quarter growth. According to the advanced estimate published by the Bank of Korea, the economy grew 2.7 percent year-on-year, as compared with the 3.3 percent growth in the second quarter. On a sequential basis, the real GDP expanded 0.7 percent, slightly slower than the 0.8 percent growth recorded in the prior quarter.

Private consumption grew 0.5 percent on sequential basis as expenditures on both services and non-durable goods rose. Government consumption was up by 1.4 percent. Meanwhile, construction investment rose 3.9 percent as investment in both residential and non-residential building construction rose.

Facilities investment shrank 0.1 percent, mostly because of a drop in transport equipment investment. On the other hand, exports grew 0.8 percent with rises in exports of chemical products and semiconductors. Imports also recorded a rise in the month, growing 2.4 percent mainly due to increase in imports of machinery and equipment and overseas consumption by resident.

On the production front, manufacturing dropped 1 percent, predominantly due to the production of transport equipment and electronic and electrical equipment. The nation also saw a rise of 6.9 percent in utility as the volume of electric power sold rose because of a heat wave.

Construction rose 4.4 percent sequentially, driven by a growth in building construction. Services grew 1 percent, as health and social work and real estate & leasing rose.