Exports recover, South Korean economy expands 0.6% in third quarter

South Korea's economy expanded by 0.6% in the third quarter of this year as consumption and exports increased. According to provisional figures announced by the Bank of Korea on the 5th, the quarter-on-quarter growth rate is different from the preliminary figures announced on October 26th.
There wasn't. The quarterly growth rate remained positive for three consecutive quarters, following 0.3% in the first quarter of this year and 0.6% in the second quarter.
Looking at the growth rate in the third quarter by sector, most items except capital investment increased.
An increasing trend was observed. Private consumption increased by 0.3%, mainly in services such as food, accommodation, and entertainment and culture. Government consumption increased by 0.2% due to an increase in in-kind social security benefits such as health insurance salary expenses. construction
Investment increased by 2.1% due to an increase in building construction and civil engineering construction, while capital investment decreased by 2.2% due to a decrease in machinery. Exports increased by 3.4%, mainly in semiconductors, machinery and equipment. The import is
Sales of petroleum products increased by 2.3%. Although the growth rates of both exports and imports have been revised downward, the contribution of net exports has been revised upward from the preliminary figure of 0.4 percentage points to 0.5 percentage points.
. On the other hand, the contribution of private consumption, which supported growth earlier, decreased from preliminary figures of 0.2 percentage points to 0.1 percentage points. Construction investment (0.3% point), government consumption (0.0% point), equipment
Investment (-0.2 percentage point) and investment in intellectual property products (0.0 percentage point) were the same as preliminary figures. As a result, the contribution of the private sector to growth in the third quarter increased from 0.5 percentage points to 0.4 percentage points.
However, the government's contribution increased from preliminary figures of 0.2 percentage points to 0.3 percentage points. Regarding the 0.6% expansion, Choi Jeong-tae, director of national economic affairs at the Bank of Korea, said, ``The previous
There is no problem with the quality of growth, as net exports, domestic demand, the private sector, and the government's contribution to growth have all turned to increase on a quarter-on-quarter basis.''The previous preliminary report indicated that there is a possibility that this year's growth rate will be 1.4%. At the time of price announcement
It's slightly higher than that." Regarding the recovery in semiconductor exports, South Korea's main export item, Choi said, ``Memory prices have stopped falling, and exports and production have increased for two consecutive quarters compared to the same period last year.''
Judging by the increase, it appears that we have entered a recovery phase." He added, "Semiconductor export volume has continued to increase year-on-year since the second quarter, and since the beginning of November, customs-cleared exports have also increased for the first time in 14 months. before
It is understood that this has increased compared to the same period of the year." However, the recovery is weak, as consumption barely contributed to growth, pushing up growth by 0.1 percentage points. Mr. Choi said, “Employment
Although the environment is a positive factor, there is uncertainty regarding prices, which continues to be a constraint on consumption.However, ``consumption is likely to continue on a gradual recovery path.''
In its revised economic outlook announced on the 30th of last month, the Bank of Korea raised its outlook for next year's consumer price inflation rate from 2.4% to 2.6%, reflecting sluggish domestic demand due to continued high prices, and predicted growth.
We have lowered our forecast for the rate from 2.2% to 2.1%. The pace of recovery in private consumption is expected to influence next year's economic trends.
Joo Won, director of the Economic Research Institute at the Modern Economic Research Institute, said, ``November's credit card
``It turns out that nominal indicators such as credit card usage have not increased as much as expected,'' he said, ``High interest rates and sluggish domestic demand are holding things back, and it will be difficult until the first half of next year.The growth rate will be higher than this year.''
However, we expect the recovery to be limited." Son Tae-yoon, a professor of economics at Yonsei University, said, ``It is true that exports have improved, but it is not enough to realize an economic turnaround.''
He pointed out, ``Basically, consumption has not recovered.Next year, it may grow to the 2% level due to the basic effect, but it will not be felt by the public.''