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Alsharq Tribune-Otaify
South Korea's real gross domestic product (GDP), adjusted for inflation, grew 1.2 percent in the third quarter compared to the previous quarter due to recovery in consumption and investment, central bank data showed Tuesday.
The seasonally-adjusted real GDP continued to rise for two straight quarters after retreating 0.2 percent in the first quarter, according to the Bank of Korea (BOK).
The consecutive growth was attributed to the rebound in private consumption and facility investment.
Private consumption, one of the two growth engines of the Asian economy, surged 1.3 percent in the July-September quarter from three months earlier after going up 0.5 percent in the previous quarter.
It marked the fastest expansion in three years since the third quarter of 2022.
As part of its supplementary budget plan, the new government of President Lee Jae-myung who took office in early June began to provide cash handouts to all people in July in a bid to bolster consumer demand.
The central bank lowered its benchmark interest rate by 25 basis points in February and May to 2.50 percent after cutting it by the same basis points in October and November last year.
Fiscal spending increased 1.2 percent in the third quarter, recording the highest since the fourth quarter of 2022.
Facility investment swelled 2.4 percent owing to solid demand for semiconductor equipment and corporate vehicles.
Construction investment fell 0.1 percent in the third quarter on a quarterly basis after decreasing 1.2 percent in the previous quarter. It kept a downward trend for the sixth successive quarter.
Export, which accounts for about half of the economy, climbed 1.5 percent in the third quarter thanks to robust global demand for locally-made semiconductors and cars.
The third-quarter export increase was slower than a growth of 4.5 percent in the second quarter amid the lingering uncertainties over global trade, caused by the U.S. tariffs imposition.
Import added 1.3 percent in the cited quarter on the back of strong demand for machinery, equipment and cars.
By industry, the seasonally-adjusted production among manufacturers advanced 1.2 percent in the third quarter on a quarterly basis after growing 2.5 percent in the previous quarter.
Output in the service industry gained 1.3 percent on an upswing in the wholesale and retail, the lodging and eatery, and the finance and insurance sectors.
Production in the construction industry was unchanged in the third quarter from three months earlier after reducing for the past five quarters, but output in the electricity, gas and water industry jumped 5.6 percent.
Output in the agriculture, forestry and fishery industry diminished 4.8 percent in the third quarter after slipping 1.2 percent in the prior quarter.
Real gross domestic income (GDI) gained 0.7 percent in the July-September quarter, lower than an increase of 1.5 percent in the April-June quarter.
