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South Korea's economy accelerated to 5 percent growth in 2006

South Korea's economy accelerated to 5 percent growth in 2006

South Korea's economy, the world's 10th largest, accelerated last year on growth in exports, capital investment and spending in the private sector, the Bank of Korea said Thursday.
The country's gross domestic product expanded 5 percent in 2006, compared with 4 percent growth in 2005, according to preliminary figures released by the central bank.
The result will likely be welcomed by the bank and the government's Ministry of Finance and Economy, which had both forecast an expansion of 5 percent after the economy slowed in 2005.
Exports grew 13 percent in 2006, compared with 9.7 percent the year before. Facilities investment expanded 7.5 percent, compared with 5.1 percent in 2005. Private consumption, meanwhile, grew 4.2 percent, beating the previous year's 3.2 percent.
Asia's third-largest economy, however, slowed in the final three months of 2006, growing 4 percent in the fourth quarter from the same period the year before. In the previous quarter the economy expanded 4.8 percent.
The quarterly result was worse than expected. A total of 10 economists surveyed by Dow Jones Newswires had forecast on average that the economy expanded 4.2 percent from a year earlier in the fourth quarter.
The manufacturing sector grew 5.7 percent in the final three months of last year from the year before, when it managed to grow 10.2 percent. Manufacturing expanded 8.8 percent in the third quarter from the year before.
The figures also showed that the economy grew 0.8 percent in the fourth quarter from the previous three-month period. Eight economists surveyed by Dow Jones had forecast on average that GDP grew 1.1 percent quarter on quarter.


Updated : 2020-12-02 22:04 GMT+08:00