National Income Statistics Team,  The Bank of Korea
Tel : 822-759-4364
Fax : 822-759-4387



Gross Domestic Product 1999 1/4 (Preliminary)



   Economic Growth in the First Quarter of 1999


   During the first quarter of 1999, Korean economy made a remarkable upturn, escaping from the recession of 1998. Its growth rate went up to 4.6 percent from minus 5.3 percent in the fourth quarter of 1998.

   Looking at GDP growth by kind of industry, the production of agriculture, forestry and fishing declined by 7.6 percent on account of the shrinkage of animal husbandry. The manufacturing sector increased sharply, recording 10.7 percent. This growth is attributable to the increased production of the electrics & electronics and transportation equipment. The construction sector continued to slump to minus 15.1 percent, largely because of the steep decline in residential and non-residential construction. Services showed 6.6 percent increase due to the sustained growth of communications business and recovery of other subsectors including wholesale & retail trade, transportation and finance & insurance.

    Viewing GDP growth by component of expenditure, private consumption showed a 6.3 percent increase due to the increased spending of households especially on the durable goods such as cars and personal computers. The decreasing trend of fxed capital formation was eased registering 4.3 percent decrease. This reflects the increase of machinery & equipment(+12.9%) and the decrease of construction(-13.7%). Merchandise exports on a volume basis grew at a rate of 12.4 percent, led particularly by the sectors of semiconductors, computers and vehicles.
 

Growth Rates by Kind of Economic Activity and Component of Expenditure 1)
(at 1995 constant prices) 
 

 

1997

1998 p

1999 p

1/4

Year

1/4

2/4

3/4

4/4

1/4

Gross Domestic Product

4.9

-5.8

-3.6

-7.2

-7.1

-5.3

4.6

  Agriculture, forestry & fishing

5.3

-6.3

6.2

-3.5

-7.0

-9.0

-7.6

  Manufacturing

5.6

-7.2

-4.6

-10.4

-9.1

-4.7

10.7

  Electricity, gas & water

10.6

-0.5

4.5

0.3

-4.1

-2.4

3.4

  Construction

-3.5

-9.0

-3.9

-6.6

-10.1

-13.3

-15.1

  Services

6.6

-5.4

-4.5

-7.4

-6.2

-3.4

6.6

  Final consumption expenditure

4.1

-8.2

-8.4

-9.7

-8.9

-5.8

5.0

    ( Private )  

4.5

-9.6

-9.9

-11.2

-10.4

-6.9

6.3

    ( Government )

1.7

-0.1

1.3

-0.7

-0.6

-0.4

-2.2

  Gross fixed capital formation  

0.8

-21.1

-20.6

-23.7

-22.2

-17.9

-4.3

    ( Construction )

-1.9

-10.2

-5.9

-7.8

-12.0

-13.7

-13.7

    ( Machinery & equipment )

4.2

-38.5

-38.3

-46.1

-39.3

-27.4

12.9

  Exports of goods & services    

11.1

13.3

25.7

13.2

8.0

8.8

12.4

    ( Merchandise )

11.5

15.6

27.1

16.5

9.5

11.5

12.8

  Imports of goods & services   

7.8

-22.0

-27.2

-25.5

-25.9

-9.0

27.5

    ( Merchandise )

7.9

-24.6

-27.7

-27.3

-28.7

-14.8

26.0


The Bank of Korea