Korea's economy edges up 0.1% in third quarter

By Kim Joo-heon Posted : October 24, 2024, 10:20 Updated : October 24, 2024, 10:25
This photo shows a port in the southern city of Busan. Yonhap
SEOUL, October 24 (AJP) - South Korea's economy grew by just 0.1 percent in the third quarter, the Bank of Korea said Thursday, falling well short of the central bank's August forecast of 0.5 percent.

Korea's real gross domestic product (GDP) regained growth momentum in the July-September period after a 0.2 percent contraction in the second quarter, which followed unexpected growth of 1.3 percent in the first quarter.

Exports fell 0.4 percent in the third quarter, dragged down by weaker auto and chemical shipments, while imports rose 1.5 percent, driven by machinery and equipment purchases.

Construction investment dropped 2.8 percent amid slowdowns in building and infrastructure projects.

Private consumption increased 0.5 percent, boosted by automobiles, communications devices, as well as medical and transportation services.

Facility investment jumped 6.9 percent, mainly in semiconductor equipment and aircraft.

Government spending edged up 0.6 percent, supported by health insurance and other social security benefits.

"Domestic demand showed a recovery trend as expected, but the growth in exports was weaker than anticipated, resulting in a slight growth of 0.1 percent compared to the previous quarter," a Bank of Korea official said.

The official explained that a strike at GM Korea and sluggish electric vehicle demand hurt auto and battery exports, while IT export growth, including semiconductors, slowed compared to the previous quarter.

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