Korea's Q3 GDP grows most in nearly 2 years
The Bank of Korea said Friday
that the nation's gross domestic product rose 3.3 percent in the July to September period from a year earlier -- the fastest pace of expansion in nearly two years.
It is also the first time the growth has topped 3 percent since the end of 2011.
What's probably more noteworthy is that the economy grew 1.1 percent in the quarter from the previous quarter, when it gained at the same pace.
It is significant because the economy's quarter-on-quarter growth remained below one percent for more than two years until early this year.
The recovery was laregly thanks to a rise in facility investment and improving domestic demand.
"Korean economy saw its exports decline for temporary factors. But consumer spending, government spending and facility investment all rose, resuling in a growth driven by domestic demand."
Facility investment rose 1.2 percent last quarter after a 0.2 percent fall in the April to June period.
Private consumption rose 1.1 percent, quickening from a 0.7 percent gain in the second quarter.
But Korea's exports, which account for half of the nation's GDP, dropped 0.9 percent from the previous quarter following a 1.8 percent expansion in the second quarter.
The central bank attributed the drop to fewer working days in September due to the national holiday Chuseok.
"With the Korean economy showing signs of escaping from a low growth trap, the central bank says the latest economic performance is in line with its forecast of 2.8 percent growth for all of this year.
Hwang Ji-hye, Arirang News.
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