SEOUL, Jan. 25 (Xinhua) -- South Korea's gross domestic product (GDP) growth topped 3 percent in 2017, the first expansion of over 3 percent in three years, due to brisk exports of locally-made semiconductors, central bank data showed Thursday.
Real GDP expanded 3.1 percent in 2017 from the previous year, exceeding 3 percent for the first time since 2014, according to the Bank of Korea (BOK). It was in line with the BOK's growth outlook but 0.1 percentage point lower than the estimate by the International Monetary Fund (IMF).
Exports, which account for about half of the export-driven economy, grew 2 percent thanks mainly to strong demand for memory chips. Brisk export for goods was offset by the weakness of services exports, which declined 9.2 percent last year.
Facility investment jumped 14.6 percent in 2017, marking the fastest yearly expansion in seven years due to strong demand for semiconductor equipment.
Private consumption rose 2.6 percent in 2017, the highest figure in six years. The growth rate of consumer spending continued to gain from 1.7 percent in 2014 to 2.5 percent in 2016 and 2.6 percent in 2017 respectively.
The fiscal spending increased 3.7 percent, with investment in the construction sector growing 7.5 percent.
By industry, growth in the manufacturing sector posted the highest rate in six years at 4.2 percent, while builders marked the growth rate of 7.2 percent last year. The services industry rose 2.1 percent, marking the lowest growth in eight years.
Outlook for the South Korean economy looked bright this year as the international bodies, including the IMF and the Organization for Economic Cooperation and Development (OECD), set its 2018 growth forecast for the economy at 3 percent. It was in line with outlooks by the South Korean government and the BOK.
During the October-December quarter, the real GDP shrank 0.2 percent compared with the previous quarter. It was the lowest figure since a 3.3 percent reduction in the fourth quarter of 2008 when the global financial crisis peaked.
It was mainly attributable to the so-called high base effect. The third-quarter GDP expansion was 1.5 percent, the highest in about seven years.
Exports in the third quarter gained 6.1 percent, before declining 5.4 percent in the fourth quarter. Local exporters brought forward the date of overseas shipments ahead of the 10-day Chuseok holiday, the South Korean version of Thanksgiving Day, in early October.
Facility investment reduced 0.6 percent in the December quarter, while construction investment retreated 3.8 percent.
Private consumption rose 1 percent in the fourth quarter from the previous quarter. The government spending rose 0.5 percent, marking the lowest in 11 quarters.
By industry, production among manufacturers dipped 2 percent in the fourth quarter on a quarterly basis. Output by builders shrank 1.5 percent, but the services production grew 0.4 percent in the quarter.