Bank of Korea Revises Q2 GDP Growth Rate Upward to 0.8% (Update)

Bank of Korea Announces 'Q2 National Income (Preliminary)' on 2nd
Exports Down 2.0%...Imports Up 2.8%
Both Private and Government Consumption Increase

[Asia Economy Reporter Jang Sehee] South Korea recorded an economic growth rate of 0.8% in the second quarter (April to June) of this year. This is a 0.1 percentage point upward revision from the preliminary figure (0.7%) announced in July. The increase is attributed to a rise in private consumption, which had been contracted due to COVID-19, and an expansion in government consumption.

According to the '2021 Second Quarter National Income (Preliminary)' released by the Bank of Korea on the 2nd, the real Gross Domestic Product (GDP) in the second quarter of this year increased by 0.8% compared to the previous quarter. This is a 0.1 percentage point upward revision from the preliminary figure (0.7%).

The growth contribution to the real GDP in the second quarter by sector was 0.5 percentage points from the private sector and 0.3 percentage points from the government.

By expenditure item, private consumption increased by 3.6%, mainly driven by semi-durable goods such as clothing and service consumption. Government consumption rose by 3.9%, due to increased spending on health insurance benefits.

Construction investment decreased by 2.3% as both building construction and civil engineering declined. Facility investment increased by 1.1%, driven by transportation equipment.

Exports decreased by 2.0%, mainly in automobiles and LCDs, while imports increased by 2.8%, led by metal products and chemical products.

The real Gross National Income (GNI) in the second quarter increased by 0.1% compared to the previous quarter. Nominal GDP, which reflects price changes, rose by 1.9% quarter-on-quarter. Nominal GNI increased by 2.4% compared to the previous quarter.

The total savings rate in the second quarter was 35.8%, and the total investment rate was 31.7%.

Meanwhile, the GDP deflator in the second quarter rose by 1.6%. Unlike the Consumer Price Index, which measures prices closely related to consumers, the GDP deflator reflects a comprehensive price level including the Producer Price Index, import/export price indices, exchange rates, and wages. This is lower than the 2.6% recorded in the first quarter.

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