South Korea's GDP Grows 0.6 Percent in Q3

The seasonally-adjusted real GDP, adjusted for inflation, gained 0.6 percent in the July-September quarter compared to the previous quarter, after rising 0.3 percent in the first quarter and 0.6 percent in the second quarter, according to the Bank of Korea (BOK).

Export advanced 3.5 percent in the third quarter on robust demand for semiconductors, machinery and equipment after retreating 0.9 percent in the second quarter.

Import rebounded 2.6 percent in the third quarter after sliding 3.7 percent in the previous quarter.

Private consumption, another growth engine of the export-driven economy, climbed 0.3 percent in the third quarter on a quarterly basis after falling 0.1 percent in the second quarter.

Fiscal spending increased 0.1 percent, while construction investment expanded 2.2 percent in the third quarter after skidding 0.8 percent in the prior quarter.

Facility investment diminished 2.7 percent in the third quarter on lower demand for machinery.

Uncertainty remained over the South Korean economy amid the prolongation of the U.S. restrictive monetary policy stance, the worsened sentiment among consumers and businesses, and the geopolitical risks in the Middle East.

For the first 20 days of October, South Korea posted 3.75 billion U.S. dollars in trade deficit on expensive crude oil.

Sentiment among consumers over the economic situation worsened for the third straight month through October, while the business sentiment worsened to the lowest in eight months.

The real estate market was roiled by higher borrowing costs. The central bank had left its policy rate unchanged at 3.50 percent since January after hiking it by 3.0 percentage points for the past one and a half years.

Earlier this month, the International Monetary Fund (IMF) maintained its 2023 growth outlook for the South Korean economy at 1.4 percent, but revised down its 2024 growth forecast by 0.2 percentage points to 2.2 percent.

By industry, the seasonally-adjusted production in the manufacturing industry grew 1.3 percent in the third quarter compared to the previous quarter.

Production in the electricity, natural gas and tap water sector dipped 1.4 percent, but those in the construction and service industries expanded 2.4 percent and 0.2 percent respectively.

Real gross domestic income (GDI) soared 2.5 percent in the July-September quarter on a quarterly basis after rising 0.5 percent in the first quarter and 0.3 percent in the second quarter.

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