South Korea's gross domestic product expanded a seasonally adjusted annualized 0.9 percent on quarter in the first quarter of 2017, the Bank of Korea said on Thursday.
That beat forecasts for an increase of 0.7 percent and was up from 0.5 percent in the three months prior.
Real gross domestic income (GDI) increased 2.3 percent on quarter during the same period.
On the expenditure side, private consumption expanded 0.4 percent, with overseas consumption by residents rising while expenditures on non-durable goods and services declined. Construction investment was up 5.3 percent, as investment in building construction increased.
Facilities investment rose 4.3 percent, led by the growth of investment in machinery such as semiconductor manufacturing equipment. Intellectual property products investment contracted 0.2 percent, mainly due to a decline of investment in R&D.
Exports expanded 1.9 percent, with increases in exports of semiconductors and machinery & equipment. Imports also rose 4.3 percent, owing to expansions in imports of machinery & equipment and precision instruments.
On the production side, agriculture, forestry & fishing production grew 6.4 percent, centering on cultivation and fishing. Manufacturing rose 2.0 percent, with increased production of semiconductors and machinery & equipment.
Electricity, gas & water supply contracted 2.2 percent, mainly due to a decline in the electricity supply, as the proportion of electricity generated by nuclear power with its high generating efficiency decreased.
Construction expanded 4.0 percent, with increases in residential and non-residential building construction. Services rose 0.1 percent, led by growth in real estate & leasing and information & communication, offsetting declines in wholesale & retail trade, restaurants & hotels and cultural & other services.
On a yearly basis, GDP jumped 2.7 percent – again exceeding estimates for 2.6 and up from 2.4 percent in the previous three months.
by RTT Staff Writer
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