South Korea GDP Downgraded In Q2
South Korea's gross domestic product was up 0.3 percent in the second quarter of 2012 compared to the previous three months, the Bank of Korea said in Thursday's final reading.
That was down from July's preliminary reading that called for a 0.4 percent increase following the 0.9 percent gain in the first quarter.
Real gross national income rose 1.2 percent on quarter, while nominal gross national income eased 0.2 percent.
On the production side, manufacturing declined 0.2 percent owing to the decrease in sub-sectors such as electrical and electronic device and petroleum, coal and chemical products, the bank said.
Construction shed 2.7 percent as buildings construction was sluggish. Services grew by 0.5 percent, with gains for instance in financial intermediation, information and communications, and health & social work.
On the expenditure side, private consumption added 0.4 percent as expenditures on durables and semi-durables increased. Facilities investment dropped by 7.0 percent, particularly in semiconductor manufacturing equipment and communications equipment. Construction investment dipped 0.4 percent, in line with the sluggishness of buildings construction, the bank said.
Exports of goods fell 1.4 percent, led by those of automobiles and petrochemical products. Imports of goods dropped by 1.8 percent as imports for example of electronic equipment and general machinery decreased.
On a yearly basis, GDP came in at 2.3 percent - again slowing from 2.4 percent in the advance estimate. The economy expanded 2.8 percent in the previous three months.
On the production side, the manufacturing sector climbed 2.6 percent on year, due to growth in sub-sectors such as transport equipment and metal products. Construction lost an annual 2.0 percent, with the sluggishness in both building construction and civil engineering. Services grew 2.6 percent on year, centering on health and social work and financial intermediation.
On the expenditure side, private consumption jumped an annual 1.1 percent, buoyed by increased expenditures on recreational products, insurance services, and telecommunication services.
Facilities investment dropped 3.5 percent on year, as investment in machinery such as semiconductor manufacturing equipment and in transport equipment such as ships decreased, the bank noted. Construction investment decreased by 2.1 percent year-on-year, as both buildings construction and civil engineering were sluggish.
Exports of goods spiked 2.1 percent on year centering around those of metal products and semiconductors, but imports of goods dropped by 0.1 percent year-on-year with decreases for instance in steel product and general machinery imports.
Nominal gross national income eased 0.2 percent on quarter, with nominal gross domestic product dipping 0.4 percent and despite higher net factor income from abroad including dividend income.
Real gross national income expanded 1.2 percent, higher than in the previous quarter as, in addition to the decrease in the magnitude of real-term losses from trade on improved terms of trade, real net factor income from abroad increased.
The GDP deflator increased 1.2 percent year-on-year. The gross saving ratio was at 31.2 percent, similar to the previous quarter's 31.3 percent. The gross domestic investment ratio was at 27.7 percent, 1.8 percentage points lower than in the previous quarter.
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