In the third quarter of 2024, South Korea’s gross domestic product (GDP) experienced a seasonally adjusted quarterly increase of 0.1 percent, according to the preliminary report released by the Bank of Korea on Thursday.
This figure fell short of predictions, which anticipated a 0.5 percent rise, following a contraction of 0.2 percent in the previous quarter.
Real gross domestic income (GDI) rose by 0.5 percent when compared to the prior quarter.
From an expenditure perspective, private consumption saw a growth of 0.5 percent, driven by increased spending on goods (such as motor vehicles and communication devices) and services (including health care and transportation).
Government spending grew by 0.6 percent, fueled by an uptick in social security benefits in kind, including health care expenditures.
However, construction investment experienced a decline of 2.8 percent, impacted by decreased activity in both building construction and civil engineering. Meanwhile, facilities investment rose by 6.9 percent, spurred by higher spending on machinery (notably semiconductor manufacturing equipment) and transportation equipment (like aircraft).
Exports decreased by 0.4 percent, primarily due to lower shipments of motor vehicles and chemical products. In contrast, imports increased by 1.5 percent, attributed to a rise in the import of machinery and equipment.
On the production side, agriculture, forestry, and fishing contributed a notable 3.4 percent boost, largely a result of enhanced livestock production.
Manufacturing saw a slight growth of 0.2 percent due to gains in transportation equipment and machinery. The electricity, gas, and water supply sector recorded a significant increase of 5.1 percent owing to higher electricity production.
Construction output dipped by 0.7 percent, driven by a downturn in building construction activities. Services grew by 0.2 percent, with notable increases in human health and social work as well as transportation and storage, which mitigated declines in wholesale and retail trade, accommodation, and food services.
On a year-over-year basis, GDP increased by 1.5 percent, again falling short of the anticipated 2.0 percent growth, following a 2.3 percent rise in the previous three months.
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