S. Korea’s GDP growth comes to 0.1% q/q in Q3, falling below forecasts with weaker exports

3분기 한국 경제 성장률 0.1% 그쳐… 수출 0.4% 뒷걸음

Findings for the third quarter show Korea's Gross Domestic Product marked a rather modest growth of 0-point-1 percent on quarter lower than market expectations owing to an ease in auto shipments overseas.
Our correspondent Moon Hye-ryeon has details.

South Korea’s economic growth has fallen short of earlier forecasts due to sluggish auto exports.
Data from the Bank of Korea on Thursday showed that the country’s GDP grew by a modest point-one percent between July and September this year compared to the previous quarter.
While this marked an improvement from the point-two percent contraction in the second quarter, the growth rate fell short of the central bank’s earlier forecast in August of point-five percent.
The country’s GDP has seen fluctuations this year, with a one-point-three percent increase in the first quarter of the year followed up with the biggest decline seen since 2022.
The BOK attributed the sluggish growth to a decline in exports of point-four percent in the third quarter, particularly in non-IT products such as vehicles and chemical goods.
It's the first time since the fourth quarter of 2022 that exports have fallen quarter-on-quarter.
Facility renovations at auto production plants as well as partial strikes at auto parts companies have contributed to sluggish auto exports, as well as what is being called a “chasm” for the electric vehicle market.

“For chemical goods and electrical equipment, demand for materials that go into making electronic vehicles and batteries is going down along with lowered demand for EVs.”

Construction investment also dwindled due to a slump in civil engineering and building construction.
Domestic demand, however, showed recovery as expected – led by increases in private consumption of goods and services as well as facility investment.
As we move forward, the BOK's August forecast said the country’s economy will expand by point-six percent in the next quarter, and the overall annual growth will come to two-point-four percent.
The central bank is expected to release a revised growth forecast in November, taking into account the latest economic data and global developments meaning it could lower its growth forecast for 2024 due to the weaker-than-expected third-quarter performance.
The International Monetary Fund also forecast earlier this week that South Korea’s GDP per capita would rise one-point-six percent this year compared to the previous year, overtaking Japan.
Moon Hye-ryeon, Arirang News.

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2024-10-24, 17:00 (KST)