Korea’s manufacturing sector grew at a brisk pace of 7.7 percent on-year in 2011 fueled by surging exports, a report by the central bank showed Tuesday.
The Bank of Korea said of the 16 industrial sectors checked, only five surpassed the country‘s gross domestic product growth, with three contracting compared to the year before.
Asia’s fourth largest economy may have grown by 3.8 percent last year, down from 6.2 percent growth posted in 2010. For the first three quarters of 2011, data showed the economy growing 3.7 percent on-year.
Of industries that surpassed the annual GDP growth, the manufacturing sector expanded the most, followed by telecommunications and the retail and the restaurant business that grew 5.7 percent and 5.4 percent, respectively.
“Overall growth for manufacturing declined compared to the year before, but it was able to pull off solid gains because of overseas demand for locally made products,” a central bank source said.
The latest report, in addition, showed the healthcare and social welfare sector, and the transport and storage sector posting growth of 4.6 percent and 4.1 percent, each for the cited year.
The BOK‘s findings, however, showed the construction, mining and farming sectors contracting vis-a-vis 2010.
The construction sector hit by a weak real estate market reported negative annual growth of 6.9 percent, with numbers for mining and farming falling 2.8 percent and 3.4 percent.
The central bank speculated that the local real estate market may have hit bottom in 2010, but gains remained relatively sluggish last year.
The minus growth in construction marks the worst showing since the 7.1 percent contraction tallied in 1999, and the fourth straight quarter of negative growth since the October-December period of 2010. (Yonhap News)
