South Korea's economy expanded at the fastest pace in nearly four years in the third quarter, buoyed by strong exports and improving private consumption, central bank data showed Wednesday.
The real gross domestic product rose 1.3 percent in the July-September period from the previous quarter, 0.1 percentage point higher than the earlier estimate, according to preliminary data from the Bank of Korea.
The reading marked the fastest quarterly expansion since the fourth quarter of 2021, when the economy grew 1.6 percent. It also accelerated from a 0.7 percent on-quarter rise in the second quarter and exceeded the BOK's prior projection of 1.1 percent.
On an on-year basis, the economy expanded 1.8 percent in the third quarter, a sharp pickup from the 0.6 percent growth recorded in the second quarter.
South Korea's GDP unexpectedly contracted 0.2 percent in the first quarter as a domestic political crisis triggered by former President Yoon Suk Yeol's martial law declaration and mounting uncertainty from US President Donald Trump's sweeping tariff measures weighed on consumer sentiment and exports.
The economy has since regained momentum, supported by government stimulus and robust export performance, particularly in the semiconductor sector.
Rising domestic demand and exports drove the economic expansion in the third quarter.
Private consumption rose 1.3 percent, marking the fastest growth since the third quarter of 2022, while government spending also climbed 1.3 percent, the highest since the fourth quarter of 2022.
Exports advanced 2.1 percent from the previous quarter, supported by strong global demand for semiconductors and automobiles.
Facilities investment grew 2.6 percent, while construction investment edged up 0.6 percent.
The BOK said domestic demand and net exports contributed 1.2 percentage points and 0.1 percentage point, respectively, to the third-quarter economic growth.
In its latest outlook released last week, the central bank raised its growth projection for this year by 0.1 percentage point to 1 percent. For 2026, it forecast a 1.8 percent expansion.
Presenting a rosier growth forecast, the BOK held its benchmark interest rate steady for the fourth consecutive meeting amid a weak currency and an unsettled housing market. (Yonhap)
