South Korea's Economy Expands at Slower Pace

South Korea's gross domestic product increased by 0.8 percent in the second quarter of 2011 compared to the previous quarter, when it advanced 1.3 percent, says The Bank of Korea. The economy grew 3.4 percent from a year earlier.

 

On the expenditure side, private consumption steadily increased, rising by 1.0 percent with increased expenditures on semi-durables and non-durables.

 

Construction investment decreased by 0.4 percent, led downward by sluggishness in civil engineering.

 

Facilities investment increased by 4.0 percent, centering on semiconductor manufacturing equipment and transport equipment.

 

Export grew by 1.8 percent, driven by ships and telecommunication devices. The growth, however, was slower than the first quarter when it increased 3.3 percent. Imports expanded by 2.8 percent, led by increases in machinery and metal products.

 

On the production side, the manufacturing sector grew by 1.5 percent, led by increases in general machinery and transport equipment.

 

Services grew by 0.1 percent, due mostly to slumps in financial intermediation and real estate & renting services.

 

Agriculture, forestry & fishing increased by 8.2 percent, breaking free from the drag represented by outbreaks of foot-and-mouth disease and the abnormal cold wave last winter.

 

Real gross domestic income (GDI) fell by 0.1 percent as terms of trade deteriorated mainly because of a run-up in oil prices.

 

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