Q3 growth hits 0.3% for 5th straight quarter of rise

The economy in the third quarter grew 0.3% from the second.

The Bank of Korea on Oct. 26 said in a report that gross domestic product (GDP) in the third quarter grew 0.3%.

Last year, the economy contracted 1.3% in the first quarter and 3.2% in the second, but returned to positive growth in the third. It has since marked five consecutive quarters of growth: 2.2% in the third and 1.1% in the fourth last year, 1.7% in the first this year, 0.8% in the second and 0.3% in the third.

The central bank said last month in a report on the second quarter’s GDP growth that this year’s growth rate will reach 4% if the third and fourth quarters each rise 0.6%.

Private consumption in the third quarter saw growth in nondurable goods such as food and beverages but that of services including food, accommodation and entertainment decreased, showing a decline of 0.3%. Government expenditures grew 1.1% led by spending on goods.

Facility investment declined 3% due to stagnation in transportation equipment including cars, and construction investment also fell 3% mainly due to declining civil projects.

Exports grew 1.5% mainly thanks to coal and petroleum goods, machinery and equipment, while imports declined 0.6% due to lower demand for transportation equipment including cars.

By economic activity in a sector, construction saw a big decline and services suffered a slowdown, while manufacturing returned to positive growth.

Agriculture, forestry and fisheries surged 8.8% led by farming, and manufacturing increased 0.2% thanks to growth in machinery and equipment. Electricity, gas and water grew 0.8% led by the gas industry.

The service sector rose 0.4% led by finance and insurance and information and communication. Construction, however, fell 1.7% due to lower volume of civil building projects.

Gross domestic income also saw 0.3% growth since trade conditions in the third quarter remained similar to those of the second.

Source: Korea.net

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