South Korea economy grows 0.9% in Q4

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South Korea’s economy grew at a slightly slower 0.9 per cent in the fourth quarter of last year, as falling construction investments offset a rise in exports, state data showed on Thursday.

Gross domestic product rose a seasonally adjusted 0.9 per cent from October-December compared to the previous quarter’s gain of 1.1 per cent, the central Bank of Korea (BOK) said.

On-year, however, the economy expanded 3.9 per cent — the fastest pace in nearly three years and topping the third quarter’s 3.3 per cent increase.

“Construction investment dropped while exports rebounded, consumer spending showed a steady rise and corporate infrastructure investments accelerated,” the central bank said in a statement.

Construction investments shrank 3.8 per cent from three months earlier as real estate markets cooled, dampening demand for buildings and other construction projects.

Consumer spending, which had unexpectedly shrank 0.4 per cent in January-March 2013, grew by 0.7 per cent and 1.0 per cent in the following two quarters and climbed 0.9 per cent in October-December.

Exports, which account for nearly half of the country’s economy, rose 2.0 per cent compared to the previous quarter when they shrank 1.3 per cent. On year, exports were up 5.5 per cent.

Overseas shipments of cars, auto parts and petrochemical products fuelled the export rebound, the central bank said.

Investments in corporate infrastructures also jumped 6.4 per cent from the previous quarter, as businesses spent more to build or upgrade production machinery, the BOK said.

For the whole of 2013, Asia’s fourth-largest economy expanded 2.8 per cent, up from 2.0 per cent posted in 2012 and in line with government forecasts.

The central bank has forecast 3.8 per cent growth in 2014, boosted by the government’s stimulus spending and improving overseas markets.

The South’s export-reliant economy was hit badly by slowing demand from major markets including the US and Europe during the global slowdown.

But its overseas shipments hit a record high of $559.72 billion in 2013 on a general pickup in global demand.

The International Monetary Fund on Tuesday lifted its 2014 global growth forecast to 3.7 per cent compared to 3.6 per cent predicted earlier, citing stronger growth in the US and eurozone.





Source : Channel News Asia | January 23, 2014


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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