South Korea’s economy expanded 1.1% QoQ in the three month to December 2021, accelerating from a 0.3% increase in the previous quarter and rising faster than the 0.9% consensus forecast. Private consumption was up by 1.7%, as expenditures on services (e.g. restaurants & accommodation, transportation) increased.

Government consumption rose by 1.1%, with increased expenditures on goods and health care benefits. Construction investment expanded by 2.9%, as building construction and civil engineering increased. Facilities investment contracted by 0.6% due to a decrease in machinery. Exports increased by 4.3%, as exports of goods such as semiconductors and coal & petroleum products expanded. Imports were up by 4.3%, owing to increased imports of crude oil and chemical products.