GDP Expands 3.2 Percent in Third Quarter
By Lee Hyo-sik
Staff Reporter
The Korean economy grew by 3.2 percent in the third quarter from the second quarter, the largest quarterly growth since the first quarter of 2002 when output rose 3.8 percent.
Asia's fourth largest economy grew 0.9 percent from July to September from the same period last year.
The GDP grew year-on-year for the first time since the third quarter of 2008.
A BOK official said the faster-than-expected GDP growth is largely attributed to stronger manufacturing. "Additionally, domestic demand jumped at a faster clip on fiscal spending and steadily recovering private consumption and corporate investment."
Manufacturing production soared 9.8 percent from the second quarter, while construction industry output inched down 0.5 percent.
Exports, which account for about 60 percent of the economy, grew 5.2 percent. Private consumption rose 1.5 percent and facility investments jumped 10.4 percent.
However, Korea's national income grew at a much slower pace than output, due to worsening terms of trade and smaller revenues from overseas.
The inflation-adjusted gross national income (GNI), a barometer of purchasing power, inched up 0.4 percent from July to September from the April to June period, down from a 5.6 percent gain in the second quarter.
The central bank said the real income grew at a slower rate on deteriorating terms of trade for local exporters as a result of rising oil and other international raw material costs.
Additionally, individuals and companies here earned less dividends, salaries and interest income from abroad, compared to the second quarter, weighing down on domestic purchasing power, it said.
Despite the economic upturn, the BOK is widely expected to leave its key policy rate untouched at a record low of 2 percent for the foreseeable future, given the increasingly uncertain economic outlook and tamed inflation and real estate prices.