South Korea GDP Growth Q4 2007
Source: http://southkoreaeconomy.blogspot.com/2008/01/south-korea-gdp-growth-q4-2007.htmlPosted on Friday, January 25th, 2008 | In Korea
South Korea’s economy grew faster than expected in the final quarter of 2007, driven by increased corporate investment and a recovery in domestic consumption, the Bank of Korea said today. Korea’s gross domestic product rose a seasonably adjusted 1.5 per cent in the October-December period, Up from 1.3 per cent in the previous quarter.The economy expanded 5.5 per cent from a year earlier, the fastest pace in almost two years.
The robust growth was propelled by stronger corporate spending with corporate investment in factories surging 4.4 per cent in the last quarter, reversing the third quarter’s drop. Increasing consumption also contributed to economic growth with private consumption rising 1.1 per cent.
Exports remained resilient in the final three months of 2007 thanks to strong demand from China. Exports jumped 7.3 per cent, accelerating from a 1.5 per cent growth in the third quarter. It was the biggest increase since the final quarter of 2003.
Shipments to China, South Korea’s biggest export market, soared 18 per cent from January 1 to December 20 and exports to the Middle East jumped almost 40 per cent.
The central bank is likely to come under growing pressure to cut interest rates as higher oil prices and grwoing problems in the US economy and Europe are expected to threaten export growth. The principal problem is that the bank has little room to cut interest rates due to rising inflation.
The central bank has forecast that growth in Asia’s third-largest economy will slow to 4.7 per cent this year, much lower than President-elect Lee Myung-bak’s growth target of 6 per cent. The economy expanded 4.9 per cent last year from the previous year’s 5.0 per cent growth.
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Asia, Bank, Bank of Korea, central bank, China, Europe, Exports, Gross Domestic Product, higher oil prices, Korea, Korea, Lee Myung-bak, Middle East, south korea, United States
 About Claus Vistesen (http://clausvistesen.squarespace.com/)
Claus Vistesen is a 23 year old macroeconomist on the verge of finishing his MSc in Applied Economics and Finance from the Copenhagen Business School. His primary research interests are international finance and international macroeconomics, especially, the changing structure of global and national demographics. Claus takes an interest in the econometrics discipline which he intends to dig deeper into post graduate. He primarily writes out of his own blog Alpha.Sources as well as Global Economy Matters. He liaises closely with his colleague and friend Edward Hugh whom he develops and produces research material and articles with. In terms of specific topics Claus tracks the European economies as well as Japan as his main areas of focus. Claus has been online with Alpha.Sources since September 2005 and has realized how a serious online presence can be an asset in terms of academic work as well as on a personal relationship level. He is grateful for the reactions, opinions, and contacts he has received through this site. The interaction between macroeconomics and demographics is a strong anchor in what goes on at Alpha.Sources, and his work in general. In the end, Alpha.Sources represents a way for Claus to conceptualize his thoughts and views on the surrounding world, so no boxes and boundaries can be set on the content. |
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