Korea Grows at 5 Year High

South Korea’s economy grew at its fastest pace in five years in the third quarter, shaking off the blow dealt by the deadly Middle East Respiratory Syndrome (MERS) outbreak earlier in the year.

Gross domestic product (GDP) grew by a seasonally adjusted 1.2 percent in the July to September period over the previous quarter, according to an advance estimate published on Friday. This marks the fastest pace since the second quarter of 2010 and is up sharply from 0.3 percent growth in April-June. In year-on year terms, growth accelerated 2.6 percent, up from 2.2 percent in the previous quarter.

Here’s what drove the growth:

Based on expenditure, gross fixed capital formation rose 2.9 percent on quarter, driven by a rise in construction activity. Construction investment grew 4.5 percent, with increases in both building construction and civil engineering. Companies also invested in machinery and equipment, boosting facilities investment.

Private consumption expanded by 1.1 percent on quarter, led by an uptick in spending on both services and durable goods, while government spending rose by 1.9 percent.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza