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Macroeconomics  |  September 03, 2010 15:23:01

South Korea's economy grew in the second quarter by 1.4%

South Korea GDP grew in the quarter to June by 1.4%, slower than 2.1% in the first quarter, said refined estimate of the Bank of Korea. It was revised down by 0.1%. In the same period a year ago the economy grew by 2.4%. The crisis in 2008 has seen the economy decline in the third and fourth quarters.

Consumption expenditure grew by 0.7%, with private consumption by 0.8% and government spending by 0.1%. Capital expenditure increased by 0.9%, of which facilities and equipment by 9.1% but in construction fell by 3.6%. Export of goods of services accelerated by 7.2% and imports jumped 7.4%. Value added of the manufacturing sector in the second quarter increased by 5.2%, driven by mechanical engineering, metalworking and automotive industries.Construction output, but due to housing construction slowed by 0.9%. The services sector recorded a slight 0.1% growth.

Compared grew fourth largest Asian economy by 7.2% and followed by 8.1% in 1Q 2010th GDP deflator fell to 2.6%. In 2009, the Korean economy showed a weak 0.2% growth. This year's forecasts assume GDP growth in South Korea by 5.3%.

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