Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = This year’s second quarter real gross domestic product(GDP) recorded the largest decline since the fourth quarter of 2022. This is because private consumption and construction and facility investment both turned to declines, and exports also decreased. Gross national income(GNI) also showed its lowest level since the third quarter of 2021.

According to the ‘2024 Q2 National Income(preliminary)’ released by the Bank of Korea on the 5th, real GDP in the second quarter decreased by 0.2% compared to the previous quarter. It is the same as the preliminary figure. However, as a result of reflecting some actual data from the last month of the quarter, facility investment(+0.9%p), exports(+0.3%p), and imports(+0.4%p) were revised upward, while construction investment(-0.7%p) and government consumption(-0.1%p) were revised downward.

By economic activity, manufacturing increased by 0.8% YoY, led by transportation equipment, while construction decreased by 6.0% YoY, as both building and civil construction declined. Services declined in information and communication, wholesale and retail trade, and accommodation and food services, but remained flat, with increases in transportation and real estate.

By expenditure item, private consumption decreased by 0.2% YoY due to sluggish consumption of goods(clothing, passenger vehicles, etc.). Government consumption, on the other hand, increased by 0.6%, mainly on goods. Construction investment decreased by 1.7% due to a decrease in both building construction and civil construction, while equipment investment decreased by 1.2% due to a decrease in machinery(semiconductor manufacturing equipment, etc.).

Exports grew 1.2%, led by automobiles, chemicals, and other products, but the increase was 0.6 percentage points lower than the previous quarter. Imports increased 1.6%, led by energy(crude oil, natural gas, etc.) and petroleum products.

Real gross national income(GNI) decreased by 1.4% YoY in the second quarter. Deteriorating terms of trade widened the real trade loss from -11.3 trillion won to -16.6 trillion won, below real gross domestic product growth(-0.2%)..

By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)

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