South Korea GDP Expands 0.6% In Q2

(RTTNews) - South Korea's gross domestic product expanded a seasonally adjusted 0.6 percent on quarter in the second quarter of 2023, the Bank of Korea said in Tuesday's advance estimate.

That exceeded expectations for an increase of 0.5 percent and was up from 0.3 percent in the previous three months.

On the expenditure side, private consumption fell by 0.1 percent, as expenditure on services such as restaurants and accommodations declined while expenditure on goods maintained the previous quarter's level.

Government consumption fell 1.9 percent, due to a decline in expenditures on social security benefits in kind. Construction investment contracted by 0.3 percent, driven by a decrease in civil engineering. Facilities investment fell by 0.2 percent, as investment in transportation equipment decreased, despite increased investment in machinery.

Exports decreased by 1.8 percent, owing to reduced exports of petroleum products and transportation services, although semiconductors and motor vehicles increased. Imports dropped by 4.2 percent, mainly due to decreased imports of crude oil and natural gas.

On the production side, agriculture, forestry and fishing rose by 5.5 percent, led by an increase in crop yields. Manufacturing was up by 2.8 percent, mainly due to an increase in computer, electronic and optical products.

Electricity, gas and water supply fell by 6.0 percent, due to a decrease in water supply, sewerage, waste management and remediation activities. Construction declined by 3.4 percent, owing to a reduction in civil engineering. Services expanded by 0.2 percent, led by an increase in transportation & storage, despite a decrease in wholesale & retail trade, accommodation & food services.

On an annualized basis, GDP was up 0.9 percent - unchanged from the first quarter and beating forecasts for a gain of 0.8 percent.