Friday, July 25th, 2014
SEOUL, KOREA - The second-quarter real gross domestic products rose 0.6 percent from the previous quarter, the lowest figure in seven quarters. This is a 3.6-percent growth from the same quarter last year. The Bank of Korea announced on July 24 real GDP figures (preliminary). The 0.6 percent quarterly growth is the lowest level since the third quarter of 2012 when the corresponding figure was 0.4 percent. Quarterly growth rates have remained below the 1-percent level for three consecutive quarters since the fourth quarter 2013.
As for the gross domestic income, a measure based on income instead of expenditure when calculating for GDP, the figure rose 1.3 percent due to improvement in the terms of trade, up 0.9 percent in the first quarter. The slowdown in the quarterly real GDP was due to a slump in domestic consumer spending as well as a decline in knowledge goods sector investment by a large margin.
Domestic consumption fell 0.3 percent from the previous quarter as consumption in both goods and services saw contraction. This is the lowest figure in 33 months since the third quarter of 2011 when consumption fell 0.4 percent quarter on quarter. This is the first negative consumption trend in five quarters since the first quarter last year (-0.1%).