South Korea’s gross domestic product expanded a seasonally adjusted 1.3 percent on quarter in the third quarter of 2015, the Bank of Korea said in Thursday’s final revision.
That’s up from the October preliminary reading that suggested an increase of 1.2 percent on quarter. GDP had added 0.3 percent in Q2.
Real gross national income climbed 1.4 percent on quarter, and nominal gross national income added 1.7 percent.
On the production side, manufacturing edged up 0.1 percent, centering on the production of semiconductors and mobile phones, despite a decline in LCDs and shipbuilding. Construction grew 5.6 percent, led by an expansion of residential building construction.
Services expanded 1.0 percent as wholesale and retail trade, restaurants and hotels, transportation and storage, and health and social work increased.
On the expenditure side, private consumption expanded 1.2 percent as expenditures on both goods and services increased. Construction investment grew 5.0 percent, mainly due to the growth of building construction.
Facilities investment advanced 1.8 percent, with increases in both transport equipment investment and machinery investment. Intellectual property products investment expanded 0.1 percent, centering on software investment.
Exports contracted 0.6 percent, with decreases in exports of LCDs and ships, and a drop in direct purchases in the domestic market by non-resident households. Imports were up 1.1 percent, as imports of petroleum and coal products, electronic and electrical equipment, and transportation services increased.
On a yearly basis, GDP was revised up to 2.7 percent from 2.6 percent in the preliminary reading. GDP had gained 2.2 percent on year in the second quarter.
On the production side, the manufacturing sector expanded 1.7 percent on year, centering on electronic and electrical equipment and chemical products. Construction increased 4.6 percent on year, as building construction expanded.
Services grew 2.6 percent on year. On the expenditure side, private consumption rose 2.1 percent on year, led by expenditures on durable goods, such as passenger vehicles, and expenditures on non-durable goods, such as groceries. Construction investment expanded 5.7 percent on year, led by growth in residential building construction.
Facilities investment rose 6.6 percent on year as transport equipment investment and machinery investment both increased. Intellectual property products investment also increased 1.2 percent, led mainly by R&D investment and software investment.
Exports added 0.3 percent, centering on petroleum and coal products, and semiconductors. Imports rose 3.2 percent on enlarged imports of automobiles and crude oil.
Nominal GNI jumped an annual 1.7 percent, with a 1.2 percent rise in nominal gross domestic product, and net factor income from the rest of the world increased.
Real GNI expanded 1.4 percent, owing to the expansion of net factor income from the rest of the world The GDP deflator rose 2.6 percent on year in Q3.
The gross saving ratio stood at 35.8 percent, up 0.5 percentage point quarter-on-quarter, as the increase in nominal gross national disposable income outpaced that of nominal final consumption expenditures.
The gross domestic investment ratio was 28.8 percent, 0.8 percentage point higher than in Q2.
The material has been provided by InstaForex Company – www.instaforex.com