S. Korea's GDP grows 0.4% in 3Q
- 5 years ago
The last time South Korea recorded annual growth below two percent was during the 2008 global financial crisis when it posted GDP growth of just point-eight percent.
With third quarter growth falling slower than expected, the economy could be on track for the slowest growth in about a decade.
Kim Hyesung reports.
South Korea's economy grew point-four percent on-quarter in the July to September period.
That's lower than the one percent growth tallied in the second quarter and the market forecast of around point-six percent.
"Private consumption increased point-one percent. Government consumption went up one-point-two percent."
Private consumption, which generates about half of Korea's GDP, slowed from a point-seven percent rise in the second quarter to point-one percent, making it the slowest pace of growth in three-and-a-half years.
The Bank of Korea attributed slower private consumption to falling spending on semi-durable goods like clothing.
Government spending increased in the third quarter, but its contribution to South Korea's GDP growth fell one percentage point compared to the second quarter.
Facilities investment increased half-a-percent but construction investment tumbled five percent.
"Third quarter GDP growth was weak due to a base effect the economy having grown one percent in the previous quarter. Also, the government's fiscal spending weakened in the third quarter. Consumer sentiment and corporate investment were weighed down by the U.S.-China trade dispute and Japan's export restrictions."
Exports have fallen for ten consecutive months since last November amid slowing global trade.
But on-quarter, exports increased four percent on improving shipments of semiconductors and autos.
Imports grew around one percent.
The central bank pointed to changes in the U.S.-China trade dispute, domestic consumption and the government's fiscal spending as factors that could affect growth going forward.
The local economy is unlikely to reach Bank of Korea's growth target of two-point-two percent this year and it will have to expand one percent in the fourth quarter to hit two percent.
Kim Hyesung, Arirang News.
With third quarter growth falling slower than expected, the economy could be on track for the slowest growth in about a decade.
Kim Hyesung reports.
South Korea's economy grew point-four percent on-quarter in the July to September period.
That's lower than the one percent growth tallied in the second quarter and the market forecast of around point-six percent.
"Private consumption increased point-one percent. Government consumption went up one-point-two percent."
Private consumption, which generates about half of Korea's GDP, slowed from a point-seven percent rise in the second quarter to point-one percent, making it the slowest pace of growth in three-and-a-half years.
The Bank of Korea attributed slower private consumption to falling spending on semi-durable goods like clothing.
Government spending increased in the third quarter, but its contribution to South Korea's GDP growth fell one percentage point compared to the second quarter.
Facilities investment increased half-a-percent but construction investment tumbled five percent.
"Third quarter GDP growth was weak due to a base effect the economy having grown one percent in the previous quarter. Also, the government's fiscal spending weakened in the third quarter. Consumer sentiment and corporate investment were weighed down by the U.S.-China trade dispute and Japan's export restrictions."
Exports have fallen for ten consecutive months since last November amid slowing global trade.
But on-quarter, exports increased four percent on improving shipments of semiconductors and autos.
Imports grew around one percent.
The central bank pointed to changes in the U.S.-China trade dispute, domestic consumption and the government's fiscal spending as factors that could affect growth going forward.
The local economy is unlikely to reach Bank of Korea's growth target of two-point-two percent this year and it will have to expand one percent in the fourth quarter to hit two percent.
Kim Hyesung, Arirang News.