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Friday, June 8, 2012

GNI growth slows in Q1: central bank


South Korea’s gross national income grew at a slower pace in the first quarter due mainly to worsening terms of trade, the central bank said Thursday.

According to the national income statistics report by the Bank of Korea, the country’s real GNI edged up 0.2 percent from the previous three-month period, while gaining 2.5 percent from the year before.

The increase marks a slowdown from 1 percent on-quarter growth tallied in the fourth quarter and a 0.6 percent gain reported for the third quarter.

“The downshift was caused by a rise in crude oil prices and a drop in price competitiveness of exports that adversely affect terms of trade,” the BOK said.

The latest report also showed the country’s gross savings ratio dipping 1.2 percentage points from the previous quarter to 31.3 percent.

The BOK, meanwhile, said South Korea’s gross domestic product grew a modest 2.8 percent on-year in the first quarter helped by facility investment and consumption gains.

The tally also marks a 0.9 percent gain from the previous three-month period, unchanged from the advanced estimate released by the central bank on April 26.

It said GDP growth was fueled by the 1 percent increase in demand for durable goods compared to the fourth quarter and a 10.3 percent rise in facility investments for semiconductors and transportation equipment.

Exports led by autos and petrochemicals gained 4.2 percent, with imports rising 4.0 percent. These gains offset the 1.2 percent dip in money poured into the construction sector, the report said. (Yonhap News)

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