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.