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by IANS |
Seoul, Oct 23 (IANS) The South Korean economy is estimated to have grown around 1 per cent in the third quarter, driven by reviving consumption and strong exports, the central bank said on Thursday.
"Despite weak construction investment, consumption showed notable improvement in the third quarter, supported by favorable consumer sentiment amid rising stock prices and the distribution of consumption vouchers," the Bank of Korea (BOK) said in the latest report, reports Yonhap news agency.
"Exports also outperformed expectations, buoyed by robust semiconductor shipments despite US tariff pressures. Consequently, growth is estimated at a relatively high rate of around 1 per cent," it added.
The official data on the third-quarter gross domestic product (GDP) is expected to be released next week.
The country's real GDP contracted 0.2 per cent in the first quarter but rebounded with 0.7 per cent growth in the second quarter.
Looking ahead, growth is expected to slow down in the fourth quarter as exports are likely to slow down amid stronger impacts of the U.S.' tariff scheme.
For the entire year of 2025, the economic growth is estimated to remain broadly in line with the BOK's annual growth forecast of 0.9 per cent.
In its August forecast, the central bank projected a 0.9 per cent expansion for this year and 1.6 per cent growth for 2026. The central bank is scheduled to release a revised outlook in November.
"Next year, the recovery is expected to continue, led by domestic demand, while exports are projected to slow due to U.S. tariffs," the BOK said.
"Uncertainties surrounding US tariff negotiations, US-China trade talks and the semiconductor cycle have intensified risks both on the upside and downside."
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