South Korea’s gross domestic product gained only 0.3 percent on an annualized quarterly basis in the second quarter of 2015, the Bank of Korea said in Thursday’s preliminary estimate.
That was shy of forecasts for an increase of 0.4 percent, and it slowed from 0.8 percent in the first quarter.
Real gross domestic income advanced 1.3 percent on quarter.
On the expenditure side, private consumption eased 0.3 percent as expenditures on semi-durable goods and services decreased. Facilities investment added 0.4 percent as investment in transport equipment increased, offsetting a decline in machinery investment.
Construction investment climbed 1.7 percent, centering on building construction investment.
Intellectual property products investment added 0.1 percent, with software investment rising while R&D investment declined.
Exports were up 0.1 percent led by semiconductors and automobiles. Imports gained 0.5 percent thanks to crude oil, automobiles and overseas consumption by residents.
On the production side, agriculture, forestry and fishing tumbled 11.1 percent – mainly because of drought, the bank noted.
Manufacturing expanded 0.8 percent, centering on the production of cellular phones and automobiles. Electricity, gas and water supply was flat on quarter.
Construction gained 0.4 percent, with an increase in residential building construction.
Services advanced 0.1 percent, led mainly by growth in finance, insurance, real estate and leasing. Those were countered by weakness among wholesale and retail trade, health and social work.
On a yearly basis, GDP added 2.2 percent – also below expectations for 2.3 percent and down from 2.5 percent in the three months prior.
Individually, exports dipped 0.9 percent on year and imports gained 1.1 percent. Gross domestic income jumped 6.7 percent.
Final consumption expenditure added an annual 2.0 percent, while gross fixed capital formation climbed 2.6 percent.
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