GDP in Korea
Korea - GDP
The economy maintained its growth momentum in Q1 2018
According to comprehensive data released by the Bank of Korea (BOK) on 1 June, GDP increased 2.8% in Q1 2018 from the same quarter in 2017. This matched the rate of expansion in Q4 2017—confirming sustained growth momentum early this year—and was unchanged from a preliminary estimate released by the BOK on 28 March. In seasonally-adjusted terms, there was a 1.0% expansion in Q1 compared to the previous quarter (previously reported: +1.1% quarter-on-quarter), which contrasted the 0.2% contraction in Q4.
While consumers remained broadly confident about the economy in the first three months of 2018, optimism fell compared to Q4 2017, and unemployment increased. Despite this, private consumption growth accelerated to a revised 3.5% in Q1 (previously reported: +3.4% year-on-year) from 3.4% in Q4. Government consumption grew a revised 5.8% in Q1 (previously reported: +6.1% yoy) amid increased public healthcare spending (Q4: +4.1% yoy). Meanwhile, fixed investment expanded a revised 3.7% in Q1 (previously reported: +4.7% yoy), representing a slowdown from 5.0% in Q4.
On the external front, exports of goods and services were confirmed to have grown 1.6% year-on-year in Q1, matching the preliminary estimate and representing an upward swing from the 0.6% contraction in Q4. Services exports increased strongly in Q1, probably on the back of tourism activity from the PyeongChang Olympic Winter Games and subsequent Paralympics, in addition to a pick-up in tourism from China. Moreover, strong shipments of semiconductors supported merchandise exports. Imports, meanwhile, increased 4.2% in Q1 (previously reported: +4.7% yoy), up from 4.1% in Q4. Overall, the external sector detracted 1.4 percentage-points from economic growth in Q1 (previously reported: -1.7 percentage points), less than the 2.4 percentage-point deduction in Q4.
Korea GDP Forecast
The Central Bank expects the economy to grow 3.0% in 2018 and 2.9% in 2019. The analysts surveyed by Met the why particular this month also see growth of 2.9% in 2018, which is unchanged from last month’s estimate, and 2.9% growth in 2019.
Korea - GDP Data
|Economic Growth (GDP, annual variation in %)||2.9||3.3||2.8||2.9||3.1|
5 years of economic forecasts for more than 30 economic indicators.
Korea GDP Chart
Source: Bank of Korea and Met the why particular calculations.
|Bond Yield||2.56||1.55 %||Jul 13|
|Exchange Rate||1,123||0.21 %||Jul 13|
|Stock Market||2,311||-0.11 %||Jul 13|
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July 12, 2018
At its 12 July meeting, the Monetary Policy Board (MPB) of the Bank of Korea (BOK) decided to keep the base rate unchanged at 1.50% amid slow job growth, weak inflation and economic risks from abroad.
July 3, 2018
According to the National Statistics Office of Korea, consumer prices fell 0.2% over the previous month in June, contrasting the 0.1% increase logged in May.
July 2, 2018
Business activity contracted in the manufacturing sector for the fourth consecutive month in June, although to a lesser extent than in May, according to the latest survey data.
July 1, 2018
In June, merchandise exports fell 0.1% compared to the same month last year, totaling USD 51.2 billion.
June 29, 2018
Industrial production in the mining, manufacturing, and gas and electricity sectors increased 0.9% in May compared to the same month last year, more than April’s revised expansion of 0.8% (previously reported: +0.9% year-on-year).