South Korea Q1 GDP Adds 0.3%

(RTTNews) - South Korea's gross domestic product expanded a seasonally adjusted 0.3 percent on quarter in the first quarter of 2023, the Bank of Korea said in Tuesday's advance estimate.

That beat forecasts for an increase of 0.2 percent following the 0.4 percent contraction, avoiding a technical recession in the process.

Real gross domestic income (GDI) increased by 0.8 percent compared to the previous quarter.

On the expenditure side, private consumption rose by 0.5 percent, as expenditure on services (e.g., recreation & culture, restaurants & accommodation) increased.

Government consumption grew by 0.1 percent, as expenditures on social security benefits in kind increased, despite a decrease in expenditures on goods.

Construction investment expanded by 0.2 percent, with increased building construction. Facilities investment fell by 4.0 percent, driven by decreased machinery investment.

Exports expanded by 3.8 percent, as exports of transportation equipment such as motor vehicles increased. Imports grew by 3.5 percent, owing to increased imports of chemical products.

On the production side, agriculture, forestry & fishing fell by 2.5 percent, led by a decrease in crop yields. Manufacturing was up by 2.6 percent, mainly due to increases in transportation equipment and basic metals.

Electricity, gas & water supply fell by 2.0 percent, with decreased gas supply. Construction expanded by 1.8 percent, owing to an increase in building construction.

Services contracted by 0.2 percent, led by decreased wholesale & retail trade, accommodation & food services and transportation & storage, despite increases in human health & social work and cultural & other services.

On an annualized basis, GDP grew 0.8 percent, shy of expectations for a gain of 0.9 percent and slowing from 1.3 percent in the previous quarter.