Financial News: South Korea GDP Climbs 1.3% On Year In

South Korea GDP Climbs 1.3% On Year In Q4

(RTTNews) - South Korea's gross domestic product expanded an annualized 1.3 percent in the fourth quarter of 2022, the Bank of Korea said in Tuesday's final reading.

That was shy of expectations for an increase of 1.4 percent and down from 3.1 percent in the third quarter.

On a seasonally adjusted quarterly basis, GDP contracted 0.4 percent - in line with forecasts following the 0.3 percent gain in the three months prior.

Real gross national income (real GNI) decreased by 0.1 percent in the fourth quarter of 2022 compared to the previous quarter.

On the production side, manufacturing fell by 4.4 percent, mainly due to decreases in chemical products, computer, electronic and optical products, and basic metals.

Construction expanded by 2.1 percent, owing to increases in civil engineering. Services grew by 0.9 percent, led by transportation and storage services, finance and insurance services, and human health and social work services.

On the expenditure side, private consumption fell by 0.6 percent, as expenditures on goods (e.g., household appliances, clothing and footwear) and services (e.g., restaurants and accommodation, recreation and culture) decreased.

Government consumption rose by 2.9 percent, with increased expenditures on goods and health care benefits. Construction investment expanded by 0.8 percent, as civil engineering increased. Facilities investment was up by 2.7 percent, driven by increases in machinery investment.

Exports contracted by 4.6 percent, as exports of goods, such as chemical products and computer, electronic and optical products, decreased. Imports declined by 3.7 percent, owing to decreased imports of crude oil and basic metals.

Nominal GNI increased by 0.4 percent in the fourth quarter of 2022 compared to the quarter before, as an increase in net factor income from the rest of the world exceeded the growth rate of nominal GDP (0.1%).

Real GNI decreased by 0.1 percent compared to the previous quarter exceeding the growth rate of real GDP (-0.4 percent), as real trading losses decreased. The GDP deflator rose by 0.4 percent year-on-year.

The gross saving ratio (gross saving/gross national disposable income) stood at 32.3 percent, 0.5 percentage points lower than in the previous quarter.

The gross domestic investment ratio (gross capital formation/gross national disposable income) was 33.6 percent, 0.9 percentage points lower than in the previous quarter.

For all of 2022, GDP was up 2.6 percent after climbing 4.1 percent in 2021.

On the expenditure side, while construction and facilities investment declined and the growth of exports and imports slowed, the growth of private consumption expanded.

On the production side, while the growth of manufacturing slowed, the growth of services slightly expanded. Real GNI decreased by 1.0 percent, as the terms of trade worsened, although real net factor income from the rest of the world increased.

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