Q3 Economic Growth Rate 0.6%... Three Consecutive Quarters of Growth (Update)

Bank of Korea Announces Preliminary Real GDP for Q3

South Korea's economy continued its growth streak for the third consecutive quarter in Q3 this year, with real Gross Domestic Product (GDP) increasing by 0.6%.

On the 26th, the Bank of Korea announced that the preliminary real GDP growth rate for Q3 this year (compared to the previous quarter) was 0.6%.

Quarterly real GDP recorded growth rates of 0.7%, 0.8%, and 0.2% in Q1, Q2, and Q3 of last year, respectively, but turned negative in Q4 last year (-0.3%) due to a sharp decline in exports. However, it has maintained continuous growth this year with 0.3% in Q1, 0.6% in Q2, and 0.6% in Q3. The Bank of Korea expects to achieve the 1.4% growth rate forecasted in August for this year.

Looking at the Q3 growth rate by sector, facility investment decreased, but construction investment increased.

Private consumption rose by 0.3%, driven mainly by service consumption such as entertainment, culture, food, and accommodation. This marks a turnaround from a 0.1% decline in Q2 this year.

Government consumption increased by 0.1% due to a rise in social security in-kind benefits.

Construction investment increased by 2.2%, with growth in both building construction and civil engineering.

Facility investment decreased by 2.7%, mainly due to a reduction in machinery.

Exports increased by 3.5%, centered on semiconductors, machinery, and equipment, while imports rose by 2.6%, mainly due to petroleum products.

By economic activity, electricity, gas, and water supply sectors declined, but manufacturing and construction sectors showed growth.

Agriculture, forestry, and fisheries increased by 1.0%, mainly driven by livestock farming, and manufacturing grew by 1.3%, with increases in computers, electronics, and optical equipment.

The electricity, gas, and water supply sector decreased by 1.4%, mainly in electricity supply. Construction grew by 2.4%, with increases in building and civil engineering construction.

The service sector increased by 0.2%, despite declines in wholesale, retail, and accommodation and food services, due to growth in cultural and other services.

Real Gross Domestic Income (GDI) in Q1 increased by 2.5%, surpassing the real GDP growth rate of 0.6%.

[Image source=Yonhap News]

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