The Korean economy grew 0.3% in the third quarter (July-September) as private consumption increased due to the abolition of social distancing and investment in facilities, focused on semiconductors, increased.
The Bank of Korea announced on the 27th that the real gross domestic product (GDP) growth rate (preliminary estimate, quarter over quarter) in the third quarter of this year stood at 0.3%.
The quarterly growth rate recorded a negative (-) growth rate in the first quarter of 2020 (-1.3%) and in the second quarter (-3.0%) due to the pandemic, followed by the third quarter (2.3 %), from the fourth quarter (1.2%) and the first quarter of 2021. (1.7%), the second quarter (0.8%), the third quarter (0.2%), the fourth quarter ( 1.3%), the first quarter (0.6%) and the second quarter (0.7%) of this year
In the third quarter, private consumption increased by 1.9%, focusing on durable goods such as cars and services such as room and board. Plant investments grew 5.0% as both machinery and transportation equipment, including semiconductor equipment, increased. Investment in construction also increased by 0.4% along with the expansion of non-residential construction, while public consumption increased by 0.2%, mainly in terms of spending on goods. Despite the slowness of semiconductors, exports increased by 1.0% thanks to the lively export of transport vehicles and services, interrupting the negative growth trend (-3.1%) in the second quarter.
However, the growth rate of imports (5.8%) focused on crude oil and machinery and equipment was about six times that of exports. This is because the terms of trade have deteriorated as import prices such as crude oil are generally higher than export prices.
In early September, the BOK predicted that the BOK could match the BOK’s forecast for this year’s growth rate (2.6%) if it rose from 0.1 to 0.2% (QoQ) in the year. third and fourth quarter.
Shin Hyun-bo, Hankyung.com reporter [email protected]
