S. Korea economy grows 1.1% in Q3

SEOUL, South Korea – South Korea’s economy expanded 1.1% in the third quarter, sustaining the same quarterly growth registered in the April-June period, the central bank said Friday, October 25

It matched the performance of 1.1% recorded in the second quarter, which was the fastest pace since the first quarter of 2011 in Asia’s 4th largest economy.

On a year-on-year basis, the economy expanded 3.3% in the third quarter, accelerating from the second-quarter’s 2.3% gain.

Exports, which account for around 50% of GDP, declined 0.9 percent from the second quarter when they had notched up gains of 1.8%.

“Exports declined, but facilities investment increased with private consumption and construction investments continuously on the rise,” the central bank said in a statement.

The on-quarter expansion was slightly higher than analyst estimates of 1% growth.

Earlier this month, the Bank of Korea maintained its growth forecast for this year at 2.8%, but revised down its growth outlook for 2014 to 3.8% from 4%.

South Korea’s export-reliant economy has been badly affected by shrinking global demand.

Overseas shipments fell 1.3% in 2012, the first decline in 3 years, as growth weakened in China, the country’s largest export destination, and as the European debt crisis undercut the global economy.

Earlier this 2013, the government introduced a 17.3 trillion won ($15.5 billion) extra budget, its first fiscal stimulus in four years, to boost the economy. – Rappler.com