Construction Drop Slows S. Korean Economy

• Proeksa Meas
• 10 July 2016
• Construction Focus
• 1943 Views

A drop in construction investment caused a slow in South Korea’s economic growth in the final quarter of 2015, according to the Bank of Korea.

tab-stops:14.15pt”> “Arial”,”sans-serif””>Though the estimated growth of 0.6 percent reported in January was upgraded to an improved 0.7 percent at the end of March, concern remains focused on the 6 percent decline in construction investment during this period in Asia’s fourth-largest economy.

tab-stops:14.15pt”> “Arial”,”sans-serif””>The upward revision owed mostly to the fact that construction spending turned out to have contracted less than earlier estimated, the data showed.

tab-stops:14.15pt”> “Arial”,”sans-serif””>Interest rate cuts by the government in 2015 boosted the property market which contributed to a 1.2 percent growth in Q3.