South Korea’s economic output expanded from a year earlier in 2014, though output by the manufacturing sector continued to dwindle with the portion of trade in total supply also shrinking, a central bank report showed Wednesday.
The country’s total supply, which equals total consumption, came to 4,237.8 trillion won ($3,598.1 billion) in 2014, up 0.7 percent from the previous year, according to the report from the Bank of Korea.
The 2014 reading marked a turnaround from a 0.2 percent on-year drop in the previous year.
Total output or supply increased despite a 4.2 percent, or 29.8 trillion won, drop in imports, as domestic production advanced 1.7 percent on-year to 3,564.1 trillion won in the cited year.
On the demand side, domestic consumption gained 1.6 percent on-year while exports dipped 3 percent.
Output by the manufacturing sector continued to shrink for the fourth consecutive year with its portion of total output slipping 0.9 percentage point to 48.5 percent in 2014, according to the BOK.
The service sector’s portion gained 0.9 percentage point to 40.9 percent, while the construction sector accounted for 5.5 percent of the total.
The advance by the service industry was more visible when looking at the total amount of added value created by each sector.
The service industry accounted for 59.6 percent of total added value created in 2014, up 4.6 percent from the previous year, while the portion of the manufacturing industry gained only 1.2 percent to 30.2 percent over the cited period.
With large drops in both exports and imports, the portion of trade in the country’s overall supply and consumption shrank to 33.6 percent, compared with 35.1 percent in 2013, the BOK said.