South Korea’s economy grew at its fastest pace in five years in the third quarter, shaking off the blow dealt by the deadly Middle East Respiratory Syndrome (MERS) outbreak earlier in the year.
Gross domestic product (GDP) grew by a seasonally adjusted 1.2 percent in the July to September period over the previous quarter, according to an advance estimate published on Friday. This marks the fastest pace since the second quarter of 2010 and is up sharply from 0.3 percent growth in April-June. In year-on year terms, growth accelerated 2.6 percent, up from 2.2 percent in the previous quarter.
Here’s what drove the growth:
Based on expenditure, gross fixed capital formation rose 2.9 percent on quarter, driven by a rise in construction activity. Construction investment grew 4.5 percent, with increases in both building construction and civil engineering. Companies also invested in machinery and equipment, boosting facilities investment.
Private consumption expanded by 1.1 percent on quarter, led by an uptick in spending on both services and durable goods, while government spending rose by 1.9 percent.
via CNBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.