SEOUL, Oct. 26 (Yonhap) — Central Bank of Korea data showed Thursday that the Korean economy recorded growth in the third quarter at the same rate as in the second quarter, with a recovery in exports and private spending.
The country’s real gross domestic product – a key measure of economic growth – rose 0.6% on a quarterly basis in the July-September period, according to preliminary data released by the Bank of Korea. This comes after the economy recorded growth of 0.6% in the second quarter and 0.3% in the first quarter.
On an annual basis, South Korea’s economy advanced 1.4% in the third quarter, after growth of 0.9% in the second and first quarters.
The fourth largest economy in Asia is witnessing a recovery since it contracted by 0.3% in the fourth quarter of last year.
For the full year, the central bank expects the economy to grow by 1.4%, down from a 2.6% expansion in 2022 and 4.3% growth in 2021.
The bank said that the growth expansion in the third quarter came with growth in exports and domestic demand.
The country’s exports rose 3.5% in the July-September period, a turnaround from a 0.9% decline in the second quarter. Imports also increased by 2.6% in the third quarter compared to the previous quarter, after a decline of 3.7% on a quarterly basis in the first quarter.
The country’s exports fell for the 12th straight month in September, but recorded the smallest year-on-year decline so far this year, as global demand for semiconductors shows signs of recovery.
Exports have witnessed a year-on-year decline since October last year amid the global economic slowdown and strict monetary tightening by the United States and other major economies to control inflation.
Meanwhile, private spending rose 0.3% in the third quarter, compared to a 0.1% decline in the previous quarter.
Government spending also increased 0.1% in the third quarter, and investment in construction increased 2.2% during the period between July and September, according to the data.
South Korea’s economy faces increasing uncertainty amid concerns about monetary tightening in major countries, including the United States, escalating geopolitical tensions, rising household debt in the country, and a slowdown in the economy of China, the country’s largest trading partner.
The central bank has frozen its key interest rate at 3.5% for the sixth time in a row this month as it assesses a slowdown in growth amid moderating inflation.
The freeze on interest rates came after the Bank of Korea raised interest rates seven consecutive times from April 2022 to January 2023.
(I finish)
heal@yna.co.kr
2023-10-26 01:20:00
#Korean #economy #grows #quarter #Yonhap #News #Agency
