Bank of Korea Revises Q1 GDP Growth Rate Upward to 1.7% (Update)

On the 9th, the Bank of Korea announced the 'Preliminary 2021 Q1 National Income'

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The preliminary real Gross Domestic Product (GDP) growth rate for the first quarter of this year was revised upward by 0.1 percentage points to 1.7%, compared to the flash estimate of 1.6% announced in April. This was due to strong exports amid the global economic recovery and a significant increase in facility investment.

According to the "2021 First Quarter National Income (Preliminary)" released by the Bank of Korea on the 9th, the real GDP for the first quarter of this year increased by 1.7% quarter-on-quarter. This is a 0.1 percentage point upward revision from the flash estimate of 1.6%.

The growth contribution to the first quarter real GDP by sector was 1.3 percentage points from the private sector and 0.4 percentage points from the government.

By expenditure item, private consumption increased by 1.2%, centered on durable goods such as passenger cars and services such as education. Construction investment recorded a 1.3% increase, thanks to a rise in building construction.

Exports increased by 2.0%, driven by automobiles and mobile phones, while imports rose by 2.9%, due to increases in machinery and equipment and primary metal products.

Growth rates by economic activity were ▲manufacturing 4.1%, ▲agriculture, forestry and fisheries 2.6%, ▲services 1.5%, and ▲construction -3.2%.

The real Gross National Income (GNI) for the first quarter increased by 2.4% quarter-on-quarter. Nominal GDP, which reflects price changes, rose by 1.9% quarter-on-quarter. Nominal GNI increased by 2.3% quarter-on-quarter.

The total savings rate for the first quarter was 37.4%, and the total investment rate was 31.0%.

The GDP deflator rose by 2.6% in the first quarter, marking the highest level since the third quarter of 2017 (3.7%). The GDP deflator had recorded negative growth for five consecutive quarters from the first quarter of 2019 to the first quarter of 2020, but has been on an upward trend since the second quarter of last year. It recorded 2.5% in the fourth quarter of last year.

Unlike the Consumer Price Index, which measures prices closely related to consumers, the GDP deflator represents a comprehensive price level including the Producer Price Index, import and export price indices, exchange rates, and wages.

This content was produced with the assistance of AI translation services.