Seoul, South Korea (4E) – The South Korean economy kept the same strong performance in the third quarter as the previous three months, surpassing analysts’ expectations and boosting hopes that Asia’s fourth-biggest economy stays on track with its recovery.
Gross domestic product (GDP) climbed 1.1 percent in the quarter through September from the previous period, matching the pace of growth in the second quarter, according to the Bank of Korea statement released Friday in Seoul.
The figure topped the median estimate of 15 economists who called for a 0.8 percent increase, according to data compiled by Bloomberg News. The GDP grew 3.3 percent from the year-earlier period.
The Bank of Korea said in a statement that while exports fell, investment on facilities jumped with private consumption and construction investments continuing to rise.
In May, President Park Geun Hye infused 17.3tn won ($16bn) of additional budget, the same month the nation’s central bank surprisingly cut borrowing rates, a move to spur an economy that expanded 2 percent in 2012, a three-year low.
Friday’s report also showed third quarter exports declined 0.9 percent on the quarter, a reversal of the 1.8 percent increase in the second quarter. Private spending increased 1.1 percent in the third quarter, compared with the 0.7 percent gain in the prior quarter.