South Korea's Q2 nominal GDP jumps 26.4%, highest in 47 years

The Bank of Korea’s provisional Q2 national income data show nominal GDP expanding 26.4% compared with the same quarter a year earlier, the fastest growth since the third quarter of 1979. Real GDP grew 0.6% from the prior quarter and 3.7% year-on-year, matching earlier flash estimates. Real GNI rose 15.6% year-on-year, the strongest since the fourth quarter of 1988, reflecting better trade conditions centered on semiconductors.

Nominal GDP’s quarterly increase of 9.2% was largely due to higher operating surpluses in manufacturing, finance and insurance, while wages in manufacturing rose 1.9%. The Bank of Korea adjusted its figures, raising construction and knowledge-intensive investment estimates by 0.1 percentage point each and lowering government consumption by the same margin.