South Korea’s economy improved in Q3 with its GDP up by 1.9pc from Q2 after posting degrowth of 3.2pc and 1.3pc in Q2 and Q1, respectively, according to advance estimates released by Bank of Korea. In Q3, GDP fell by 1.3pc from the prior-year quarter (Q3 FY2019).
Real gross domestic income (GDI) rose by 2.5pc from Q2, but contracted by 0.5pc from the prior-year quarter.
In Q3, manufacturing grew by 7.6pc in Q3 compared to an 8.9pc contraction in Q2, while construction contracted by 5.5pc compared to a 0.3pc drop in the prior quarter. Manufacturing fell by 1pc, while construction contracted by 2.2pc from the prior-year quarter. Agriculture, forestry and fishing rose by 1.8pc in Q3 compared to a 9.5pc contraction in Q2. The sector contracted by 5.9pc from the prior-year quarter. Services rose by 0.7pc, while utilities fell by 7.4pc amid a decrease in electricity supply.
On the consumption side, private consumption fell by 0.1pc as consumer cut expenditure on semi-durable goods, while government consumption rose by an equivalent figure, mainly due to healthcare benefits. Private consumption fell by 4.5pc while government’s rose by 4.5pc from the prior-year quarter. Investment in construction sector dropped by 7.8pc amid decrease in civil engineering projects. Capital invested in construction fell by 1.6pc from the prior-year quarter.
South Korean exports rose by 15.6pc amid a rise in motor vehicle and semiconductor shipments, while imports grew by 4.9pc driven by higher crude oil and chemicals imports. From the prior-year quarter, exports dropped by 3.7pc, while imports dipped by 5.3pc.