National Income Statistics Team, Economic Statistics Department,
The Bank of Korea
Tel : 82-2-759-4366, 4383
Fax : 82-2-759-4387




Gross Domestic Product : Second Quarter 1999 (PRELIMINARY)



     Economic Growth in the Second Quarter of 1999


      During the second quarter of 1999, Korean economic growth went up to 9.8 percent compared to the same period of the previous year. In terms of real GDP, this was far higher growth than the 4.6 percent of the previous quarter.

      Looking at GDP growth by kind of industry, agriculture, forestry and fishing production increased 4.9 percent due to increased crop output. The manufacturing sector made a further sharp increase, recording 20.1 percent, owing to increased production of semiconductors, computers and transportation equipment. The construction sector continued to slump, this time by minus 7.9 percent, largely because of the continuous decline in building construction despite brisk construction of SOC. Services showed a 10.4 percent increase due to the sustained growth of the communications business and improvements in other subsectors including wholesale & retail trade and the security business.

      Viewing GDP growth by component of expenditure, private consumption showed a 9.0 percent increase due to the increased spending of household, especially on durable goods such as cars, furniture and personal computers. Fixed capital formation shifted to positive growth of 4.9 percent, thanks to the strong recovery of equipment investment (+37.2%) and an easing of the downward trend of construction investment(-8.5%). Merchandise exports on a volume basis grew at a rate of 18.8 percent, due to sustained increases in heavy industries such as semiconductors, personal computers and machinery, and the recovery of light industry.

 

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

 Unit : (%)             


1997

1 9 9 8 p

1999 p

Year

1/4

2/4

3/4

4/4

1/4

1/4

2/4

Gross Domestic Product

6.2

-5.8

-3.6

-7.2

-7.1

-5.3

4.6

9.8

  Agriculture, forestry & fishing
  Manufacturing
  Electricity, gas & water
  Construction
  Services

4.0
7.8
10.7
1.9
7.2

-6.3
-7.2
-0.5
-9.0
-5.4

6.2
-4.6
4.5
-3.9
-4.5

-3.5
-10.4
0.3
-6.6
-7.4

-7.0
-9.1
-4.1
-10.1
-6.2

-9.0
-4.7
-2.4
-13.3
-3.4

-7.4
10.7
2.9
-14.7
6.5

4.9
20.1
7.1
-7.9
10.4

  Final consumption expenditure
     ( Private )
     ( Government )
  Gross fixed capital formation
     ( Construction )
     ( Machinery & equipment )
  Exports of goods & services
     ( Merchandise )
  Imports of goods & services
     ( Merchandise )

4.1
4.4
2.5
2.2
2.9
1.3
24.8
25.4
7.5
7.1

-8.2
-9.6
-0.1
-21.1
-10.2
-38.5
13.3
15.6
-22.0
-24.6

-8.4
-9.9
1.3
-20.6
-5.9
-38.3
25.7
27.1
-27.2
-27.7

-9.7
-11.2
-0.7
-23.7
-7.8
-46.1
13.2
16.5
-25.5
-27.3

-8.9
-10.4
-0.6
-22.2
-12.0
-39.3
8.0
9.5
-25.9
-28.7

-5.8
-6.9
-0.4
-17.9
-13.7
-27.4
8.8
11.5
-9.0
-14.8

5.0
6.2
-1.7
-4.3
-13.7
12.9
11.9
12.7
27.4
26.3

7.2
9.0
-2.6
4.9
-8.5
37.2
16.0
18.8
27.4
31.4


The Bank of Korea