South Korea Q4 GDP Climbs 0.1% On Quarter

(RTTNews) - South Korea's gross domestic product improved a seasonally adjusted 0.1 percent on quarter in the fourth quarter of 2024, the Bank of Korea said on Thursday.

That was unchanged from the three months prior, although it missed expectations for an increase of 0.2 percent.

Real gross domestic income (GDI) increased by 0.6 percent on quarter.

On the expenditure side, private consumption grew by 0.2 percent mainly due to increases in expenditures on semi-durable goods, like clothing and footwear, and services like health and education services. Government consumption rose by 0.5 percent, with increased social security benefits in kind (expenditures on health care benefits).

Construction investment shrank by 3.2 percent, as building construction and civil engineering both decreased. Facilities investment increased by 1.6 percent, led by an increase in machinery (semiconductor manufacturing equipment). Exports were up by 0.3 percent as exports of IT items like semiconductors increased. Imports contracted by 0.1 percent, as imports of motor vehicles and crude oil decreased.

On the production side, agriculture, forestry and fishing fell by 3.9 percent, mainly due to a decrease in crop yields. Manufacturing expanded by 0.1 percent, centered on increases in chemicals and chemical products and computer, electronic and optical products and offset by a decrease in fabricated metal products.

Electricity, gas and water supply fell by 2.9 percent, largely as a result of a decrease in gas, steam and air conditioning supply. Construction shrank by 3.5 percent, owing to decreases in both building construction and civil engineering.

Services expanded by 0.3 percent, led by increases in finance and insurance and human health and social work, offsetting decreases in wholesale and retail trade, accommodation and food services

On an annualized basis, GDP was up 1.2 percent - missing forecasts for 1.4 percent and slowing from 1.5 percent in the third quarter.

For all of 2024, GDP was up 2.0 percent - up from 1.4 percent in the previous year.

On the expenditure side, the growth of government consumption, facilities investment and exports expanded, while the growth of private consumption slowed and construction investment turned negative.

On the production side, the growth of manufacturing expanded, while the growth of services slowed and construction turned negative.

Real GDI expanded by 3.9 percent, increasing more than real GDP (2.0 percent) as the terms of trade improved compared to the previous year.