South Korea GDP Sinks 3.3% On Quarter In Q2

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South Korea’s gross domestic product was down a seasonally adjusted 3.3 percent on quarter in the second quarter of 2020, the Bank of Korea said in Thursday’s advance estimate.

That missed forecasts for a decline of 2.3 percent following the 1.3 percent contraction in the previous three months.

Real gross domestic income decreased by 2.0 percent on quarter.

On the expenditure side, private consumption was up 1.4 percent as expenditures on durable goods increased. Government consumption rose 1.0 percent, with increased expenditures on goods. Construction investment contracted 1.3 percent as building construction decreased. Facilities investment fell 2.9 percent driven by a decrease in transportation equipment.

Exports fell by 16.6 percent due to decreases in motor vehicles and coal and petroleum products. Imports lost 7.4 percent owing to reduced imports of crude oil.

On the production side, agriculture, forestry and fishing sank 9.7 percent, as crop yields declined. Manufacturing dropped 9.0 percent, due to decreases in transportation equipment and computer and electronic and optical products.

Electricity, gas and water supply added 2.8 percent, due to improvement in generation efficiency despite a decrease in sales of electricity. Construction eased 0.2 percent, owing to a decrease in building construction.

Services shed 1.1 percent, mainly in wholesale and retail trade, accommodation and food services, transportation and storage and cultural and other services.

On a yearly basis, GDP was down 2.9 percent – again missing forecasts for a fall of 2.0 percent after rising 1.4 percent in the three months prior.

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