South Korea's economy sees slower-than-expected growth in Q3

(MENAFN) South Korea's economy experienced slower-than-expected growth in the third quarter, primarily due to a decline in exports, although there was a slight improvement in domestic demand and investment in facilities, according to data released by the central bank on Thursday. The real gross domestic product (GDP), which serves as a critical measure of economic growth, increased by just 0.1 percent on a quarter-on-quarter basis during the July-September period, as reported by the Yonhap news agency.

This growth figure fell significantly short of market expectations, which had anticipated a 0.5 percent increase. This disappointing result follows a 0.2 percent contraction in the previous quarter and a more robust 1.3 percent growth rate in the first quarter of the year. The slowdown highlights ongoing challenges in the South Korean economy, particularly in the external trade sector.

In annual terms, South Korea's economy grew by 1.5 percent in the third quarter, down from a 2.3 percent growth rate in the second quarter. The decrease indicates a cooling economy, prompting concerns among policymakers and analysts about the sustainability of growth moving forward.

According to the central bank, private spending showed signs of recovery, rising by 0.5 percent quarter-on-quarter in the third quarter after a 0.2 percent decline in the previous quarter. However, the country's exports faced a contraction of 0.4 percent in the third quarter, a sharp contrast to the 1.2 percent growth observed in the second quarter. Meanwhile, imports increased by 1.5 percent in the third quarter, albeit down from a 1.6 percent growth in the preceding quarter.

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