2021.01.2522:45:00UTC+00South Korea GDP Expands 1.1% On Quarter In Q4

South Korea's gross domestic product climbed a seasonally adjusted 1.1 percent on quarter in the fourth quarter of 2020, the Bank of Korea said in Tuesday's advance estimate.

That beat expectations for an increase of 0.7 percent following the 2.1 percent gain in the previous three months.

Real gross domestic income increased 0.7 percent on quarter.

On the expenditure side, private consumption contracted by 1.7 percent, as expenditures on services (restaurants and accommodation) and goods (food) both decreased. Government consumption fell 0.4 percent, with decreased expenditures on goods and health care benefits. Construction investment expanded 6.5 percent, as building construction and civil engineering increased.

Facilities investment fell 2.1 percent due to a decrease in transportation equipment despite an increase in machinery. Exports rose 5.2 percent as exports of goods such as semiconductors and chemical products expanded. Imports were up 2.1 percent, owing to increased imports of machinery and equipment.

On the production side, agriculture, forestry and fishing jumped 4.9 percent due to increased crop yields and fishery production. Manufacturing rose 2.8 percent due to increases in chemical products and computer, electronic and optical products. Electricity, gas and water supply added 5.9 percent due to an increase in electricity.

Construction expanded 2.6 percent, owing to increases in building construction and civil engineering. Services grew 0.4 percent, led by information and communication and human health and social work despite decreases in accommodation and food services and transportation and storage.

On a yearly basis, GDP sank 1.4 percent - exceeding forecasts for a drop of 1.7 percent following the 1.1 percent decline in the three months prior.

For all of 2020, GDP was down 1.0 percent.

On the expenditure side, while the growth of government consumption continued and facilities investment turned positive, private consumption and exports reversed to a decrease.

On the production side, while the decline in construction was alleviated, manufacturing and services turned negative.

Real GDI fell by 0.3 percent. As the terms of trade improved due to factors such as a decrease in the price of crude oil, real GDI exceeded real GDP.