S. Korea’s GDP grows 0.1 pct on quarter in Q3

SEOUL, Oct. 24 (Xinhua) — South Korea’s gross domestic product (GDP) grew in the third quarter thanks to the recovery in consumption and investment that offset the export slump, central bank data showed Thursday.
The seasonally-adjusted real GDP, modified for inflation, gained 0.1 percent in the July-September quarter compared to the previous quarter after contracting 0.2 percent in the April-June quarter, according to the Bank of Korea (BOK).
The rebound was attributed to the turnaround in private consumption and facility investment that offset the export fall.
Export, which accounts for about half of the export-driven economy, declined 0.4 percent in the third quarter on a quarterly basis, turning downward from an increase of 1.2 percent in the second quarter.
Import climbed 1.5 percent on strong demand for machinery and equipment.
Private consumption, another growth engine of the Asian economy, rose 0.5 percent in the third quarter from three months earlier after going down 0.2 percent in the second quarter.
The turnaround was ascribed to higher demand for cars and mobile devices as well as medical and transport services.
Facility investment rebounded 6.9 percent in the July-September quarter owing to solid demand for machinery and transport equipment, after retreating 2.0 percent in the first quarter and 1.2 percent in the second quarter.
Despite the recovery in consumption and investment, uncertainties remained over the economy as geopolitical risks in the Middle East and Europe lifted volatility in the won/dollar exchange rate.
The real estate market remained sluggish. The BOK cut its benchmark interest rate by 25 basis points to 3.25 percent earlier this month to bolster the housing transactions.
Fiscal spending added 0.6 percent, but construction investment reduced 2.8 percent in the third quarter after sliding 1.7 percent in the previous quarter.
Investment in intellectual property slipped 0.1 percent, while inventory raised the real GDP by 0.3 percentage points.
By industry, the seasonally-adjusted production in the manufacturing sector swelled 0.2 percent in the third quarter compared to the previous quarter.
Production in the service industry expanded 0.2 percent, but output in the construction segment shrank 0.7 percent.
Output in the agricultural, livestock and fishery industry advanced 3.4 percent in the third quarter, while production in the electricity, natural gas and water sector mounted 5.1 percent.
Real gross domestic income was up 0.5 percent during the July-September quarter after decreasing 1.2 percent in the previous quarter. ■