South Korea GDP Expands 0.7% On Quarter In Q2

(RTTNews) - South Korea's gross domestic product climbed a seasonally adjusted 0.7 percent on quarter in the second quarter of 2022, the Bank of Korea said in Thursday's preliminary reading.

That was in line with expectations and up from 0.6 percent in the previous three months.

On the production side, manufacturing decreased by 0.7 percent, mainly in chemicals & chemical products and basic metals.

Construction fell by 0.1 percent, as specialized construction decreased, despite an increase in building construction.

Services grew by 1.8 percent, with increases in accommodation & food services, transportation & storage and cultural & other services.

On the expenditure side, private consumption was up by 2.9 percent, as expenditures on semi-durable goods (e.g. clothing & footwear) and services (e.g. recreation & culture, restaurants & accommodation services) increased.

Government consumption rose by 0.7 percent, mainly due to increased expenditures on social security benefits in kind.

Construction investment expanded by 0.2 percent, as building construction increased, despite a decrease in civil engineering.

Facilities investment grew by 0.5 percent, as machinery increased, despite a decrease in transportation equipment.

Exports fell by 3.1 percent, due to decreases in chemical products and basic metals. Imports contracted by 1.0 percent, owing to decreased imports of crude oil and natural gas.

On an annualized basis, GDP improved 2.9 percent - also matching forecasts and easing from 3.0 percent in the three months prior.

Nominal GNI rose by 1.3 percent in the second quarter of 2022 relative to the quarter before, increasing less than nominal GDP (1.5 percent) as net factor income from the rest of the world decreased.

Real gross national income was down 1.3 percent on quarter.

The GDP deflator was up 2.1 percent on year.

The gross saving ratio (gross saving/gross national disposable income) stood at 34.2 percent, 1.5 percentage points lower than in the previous quarter, as the final consumption expenditure (3.7 percent) increased more than the nominal gross national disposable income (1.2 percent).

The gross domestic investment ratio (gross capital formation/GNDI) was 32.3 percent, 1.7 percentage points higher than in the previous quarter, due to an increase in facilities investment.