[Breaking] Second-Quarter Nominal GDP Grows 9.2% on Semiconductor Boom, Highest in 47 Years

[Financial News]  Real gross domestic product (GDP) grew 0.6% quarter on quarter in the second quarter, driven by record semiconductor export performance. The figure was unchanged from the advance estimate released in July. Real GDP grew 1.8% quarter on quarter in the first quarter.
Nominal GDP, which represents the size of the national economy, increased 9.2% from the previous quarter. It was the highest increase in 47 years.
Real gross national income (GNI) rose 3.1% quarter on quarter, while nominal GNI increased 8.8%. If this growth trend continues, the country is expected to achieve growth in the 3% range this year.
The BOK announced provisional second-quarter national income figures on the 8th.
Real GDP increased 0.6% quarter on quarter and 3.7% from the same period a year earlier. 
Nominal GDP rose 9.2% from the previous quarter and 26.4% from a year earlier.  This was the highest increase in 47 years, since the third quarter of 1979, when it rose 27.7%.
Manufacturing grew 1.4% quarter on quarter, led by computers, electronics, and optical equipment. Services increased 1.0%, driven by wholesale and retail trade, accommodation and food services, finance and insurance, and information and communications.
Construction, however, continued to suffer from an economic slowdown and declined 1.9% as civil engineering construction fell.
Private consumption increased 0.4% quarter on quarter as spending rose on both goods, including home appliances, and services such as food and accommodation.
Government consumption rose 0.1%, led by spending on health insurance benefits.
Facility investment increased 0.2% as investment in machinery, including semiconductor manufacturing equipment, grew. Investment in intellectual property products rose 3.4%, led by research and development and software.
Exports increased 1.3%, led by semiconductors, machinery, and equipment, while imports rose 0.7%, driven by automobiles, machinery, and equipment.
Construction investment, however, declined 0.1% as civil engineering construction decreased.
Nominal GDP, which includes the effects of price increases, also rose 9.2% quarter on quarter. Compensation of employees increased 1.9%, led by manufacturing. Gross operating surplus rose 18.5%, driven by manufacturing, finance, and insurance.
The GDP deflator rose 21.9% from a year earlier, a sharp increase from 12.9% in the previous quarter.
Gross national income increased significantly.
Nominal GNI rose 8.8% quarter on quarter, increasing alongside nominal GDP, which grew 9.2%. Real GNI increased 3.1% quarter on quarter.
A BOK official explained, "Improved terms of trade increased real trade gains from 38.7 trillion won to 58.5 trillion won, pushing them above real gross domestic product (GDP) growth of 0.6%."
[email protected] Jung Sang-gyun Reporter