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S. Korea economy adds 1.1% in Q3

AFP | Last Updated: Friday, October 25, 2013 - 12:47

South Korea`s economy expanded 1.1 percent in the third quarter, sustaining the same quarterly growth registered in the April-June period, the central bank said Friday.

It matched the performance of 1.1 percent recorded in the second quarter, which was the fastest pace since the first quarter of 2011 in Asia`s fourth-largest economy.

On a year-on-year basis, the economy expanded 3.3 percent in the third quarter, accelerating from the second-quarter`s 2.3 percent gain.

Exports, which account for around 50 percent of GDP, declined 0.9 percent from the second quarter when they had notched up gains of 1.8 percent.

"Exports declined, but facilities investment increased with private consumption and construction investments continuously on the rise," the central bank said in a statement.

The on-quarter expansion was slightly higher than analyst estimates of 1.0 percent growth.

Earlier this month, the Bank of Korea maintained its growth forecast for this year at 2.8 percent, but revised down its growth outlook for 2014 to 3.8 percent from 4.0 percent.

South Korea`s export-reliant economy has been badly affected by shrinking global demand.

Overseas shipments fell 1.3 percent in 2012, the first decline in three years, as growth weakened in China, the country`s largest export destination, and as the European debt crisis undercut the global economy.

Earlier this year, the government introduced a 17.3 trillion won (USD15.5 billion) extra budget, its first fiscal stimulus in four years, to boost the economy.

First Published: Friday, October 25, 2013 - 12:47
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