South Korea GDP Expands 0.1% On Quarter In Q3

South Korea's gross domestic product gained a seasonally adjusted 0.1 percent on quarter in the third quarter of 2024, the Bank of Korea said in Thursday's preliminary reading.That missed forecasts ...

RTT Staff Writer•Thursday, October 24, 2024•1 min read

South Korea’s gross domestic product gained a seasonally adjusted 0.1 percent on quarter in the third quarter of 2024, the Bank of Korea said in Thursday’s preliminary reading.

That missed forecasts for an increase of 0.5 percent following the 0.2 percent contraction in the second quarter.

Real gross domestic income (GDI) increased 0.5 percent compared to the previous quarter.

On the expenditure side, private consumption grew 0.5 percent, as expenditures on goods (e.g., motor vehicles, communication equipment) and services (e.g., health services, transport services) increased.

Government consumption rose by 0.6 percent, with increased social security benefits in kind (e.g., expenditures on health care benefits).

Construction investment shrank 2.8 percent, as building construction and civil engineering both decreased. Facilities investment increased by 6.9 percent, as machinery (e.g., semiconductor manufacturing equipment) and transportation equipment (e.g., aircraft) both increased.

Exports fell 0.4 percent, as exports of motor vehicles and chemical products decreased. Imports were up by 1.5 percent, as imports of machinery & equipment increased.

On the production side, agriculture, forestry and fishing added 3.4 percent, due to an increase in livestock production.

Manufacturing expanded 0.2 percent, as transportation equipment and machinery and equipment increased. Electricity, gas and water supply increased by 5.1 percent, due to an increase in electricity.

Construction fell 0.7 percent, owing to a decrease in building construction. Services expanded 0.2 percent, centering on increases in human health and social work and transportation and storage, offsetting a decrease in wholesale and retail trade, accommodation and food services.

On an annualized basis, GDP rose 1.5 percent – again missing expectations for a gain of 2.0 percent following the 2.3 percent gain in the three months prior.