South Korea’s industrial output rose less than estimated, reducing the case for the central bank to raise interest rates for a third time by year-end.
Output advanced 13.5 percent in October from a year earlier, compared with the median forecast for a 15.1 percent gain in a Bloomberg News survey of nine economists, a Statistics Korea report showed in Gwacheon today. Production fell 4.2 percent on a monthly basis, the third straight decline.
South Korea's economic growth slowed to 0.7 percent in the third quarter from three months earlier as the pace of exports lost momentum, the central bank said Wednesday.Compared to a year earlier, gross domestic product rose 4.5 percent in July-September, according to an advance estimate by the Bank of Korea.The economy had expanded 1.4 percent quarter-on-quarter in April-June and 7.2 percent year-on-year.
The Bank of Korea will assess the scope for raising borrowing costs from 2.5 percent at next week’s policy meeting, as tension with North Korea overshadows Asia’s fourth-largest economy. The monthly decline in output, the biggest in 22 months, may fan concern that a rise in the won and cooling global demand is hurting exports of the nation’s cars and electronic products.
Weakest Level
The won fell 0.2 percent to 1,154.84 per dollar as of 10:16 a.m. in Seoul, according to data compiled by Bloomberg. It has risen 3.2 percent in the past three months, the third-biggest gainer in Asia. The benchmark Kospi stock index rose 0.6 percent.
South Korea's economic growth slowed to 0.7 percent in the third quarter from three months earlier as the pace of exports lost momentum, the central bank said Wednesday.Compared to a year earlier, gross domestic product rose 4.5 percent in July-September, according to an advance estimate by the Bank of Korea.The economy had expanded 1.4 percent quarter-on-quarter in April-June and 7.2 percent year-on-year.
The currency touched 1,172.50, the weakest level since Sept. 9, after North Korea shelled a South Korean island last week, killing four people, injuring 20 and heightening tension on the peninsula. President Lee Myung Bak vowed the North would be “made to pay” for any further provocation in a television address to the nation yesterday.
South Korea posted a trade surplus of 5.67 billion dollars in July, the sixth straight month of gains thanks to robust exports, officials said Sunday.Exports, led by automobiles and semiconductors, rose 29.6 percent on-year to 41.35 billion dollars, while imports gained 28.9 percent to 35.68 billion dollars, the Ministry of Knowledge Economy said.South Korea's trade surplus will increase further in the coming months, it said, citing healthy demand overseas.The July figure is the latest in a series of strong economic data for Asia's fourth largest economy.
Export Growth
Export growth, a driver of industrial production, accelerated to 27.6 percent in October. Overseas shipments account for about half the economy and have boosted earnings this year at firms such as Hyundai Motor Co., South Korea’s largest automaker.
South Korea's economy expanded 3.2 percent in the third quarter, the central bank said Friday, a better performance than initially estimated amid stronger growth in manufacturing, exports and services.
A leading index of economic indicators, which forecasts business activity, rose 3.4 percent in October from a year earlier, compared with a 4.9 percent gain in September, today’s report showed.
South Korea’s economy grew 4.5 percent in the third quarter from a year earlier, slowing from a 7.2 percent pace in the three months through June. The government expects limited economic impact from the incident with the North and has pledged to supply ample liquidity to cope with any shocks.
A separate report today showed South Korean manufacturers’ confidence declined to an 11-month low following the rise in the currency and higher raw material costs.
Posted in: South Korea's ecnomy,South Korea's economic growth slowe South korea's industrial output.,South Korea's Economy Increased Less Than October