South Korea revises up Q2 GDP on quarter growth to 2.6%

03 September 2009 03:33  [Source: ICIS news]

SINGAPORE (ICIS news)--The South Korean economy grew 2.6% in the second quarter from the first, aided by a strong rebound in manufacturing and improvement in services output,  the country’s central bank said on Thursday.

The figure was 0.3 percentage points higher than the advance GDP estimates released on 24 July.

Its manufacturing sector posted an 8.9% on quarter jump in the three months to June, from a 3.4% contraction in the March quarter, official data showed.

Services, on the other hand, grew a stronger 1.1% for the period from a 0.3% in the first three months of the year.

The other major sectors of the economy – agriculture, utilities, and construction – weakened.

Agriculture, forestry and fishing registered a wider 1.7% decline in the June quarter from 0.1% in the March quarter, while construction slipped 0.2%, reversing the 5.9% growth recorded in the first quarter.

The electricity, gas and water supply sector shrank 6.3% in the April-to-June period after expanding 8.0% in the previous three months.

“On the expenditure side, private consumption rose by 3.6 percent as expenditures on durables expanded significantly and growth in expenditures on services also increased,” the central bank said.

Investments in facilities such as machinery and transport equipment grew 10.1% on quarter, while investments in construction rose 1.7% mainly due to additional activities in residential construction.

Construction investment also rose by 1.7 percent as activities in the residential sector improved.

South Korean exports grew 14.7% on quarter during the period, largely due to buoyant shipment of electronics products.

Imports also grew 7.4% on quarter, led by chemical and electronic products, the central bank said.

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By: Pearl Bantillo
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