Q4 GDP Growth Rate 0.6%... Four Consecutive Quarters of Growth (Supplement)

Bank of Korea Announces Preliminary Real GDP for Q4 2023
Achieves Annual Growth Forecast of 1.4%... First Time Growth Exceeds 1%

South Korea's economy recorded a 0.6% growth in real Gross Domestic Product (GDP) in the fourth quarter of last year, continuing its growth streak for four consecutive quarters.

On the 25th, the Bank of Korea announced that the real GDP growth rate for the fourth quarter of last year (preliminary figure, quarter-on-quarter) was 0.6%, the same figure as in the second and third quarters.

Quarterly real GDP turned negative in the fourth quarter of 2022 (-0.3%) due to a sharp decline in exports, but it continued to grow consecutively in the first quarter (0.3%), second quarter (0.6%), third quarter (0.6%), and fourth quarter of last year.

Looking at the growth rate by sector in the fourth quarter, private and government consumption, exports, and facility investment increased, while construction investment decreased.

Private consumption increased by 0.2%, as resident overseas consumption expenditures rose despite a decrease in goods consumption.

Government consumption increased by 0.4%, driven by increased social security in-kind benefits such as goods expenses and health insurance benefits.

Construction investment decreased by 4.2%, with declines in both building construction and civil engineering.

Facility investment increased by 3.0%, centered on transportation equipment.

Exports increased by 2.6%, mainly due to semiconductors, while imports rose by 1.0%, mainly due to petroleum products.

By industry, agriculture, forestry, and fisheries decreased by 6.1% due to reduced agricultural production, while manufacturing increased by 1.1%, led by computer, electronic, and optical equipment manufacturing.

Electricity, gas, and water supply increased by 11.1%, centered on electric power companies. Construction decreased by 3.6%, with declines in both building and civil engineering construction.

Services increased by 0.6%, despite decreases in finance and insurance, due to increases in business services, medical and health services, and social welfare services.

Real Gross Domestic Income (GDI) in the fourth quarter increased by 0.4%, lower than the real GDP growth rate (0.6%).

Real GDP for last year increased by 1.4% compared to the previous year, in line with the Bank of Korea's forecast. It is the fifth time that South Korea's growth rate has fallen below 2%, and the first time it has recorded growth in the 1% range.

The real GDI growth rate (1.4%) was the same as the real GDP growth rate (1.4%) as terms of trade remained at the previous year's level.

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