Korean economy expands 0.6 percent in Q3

Korea’s economy grew 0.6 percent in the July-September period from a quarter earlier as consumer spending rebounded centered on dining and accommodations, according to the Bank of Korea’s preliminary data on Thursday.

Containers are stacked at a pier in Korea's largest port city of Busan on July 4. [YONHAP]

Korea’s economy grew 0.6 percent in the July-September period from a quarter earlier as consumer spending rebounded largely on dining and accommodations, according to the Bank of Korea’s preliminary data on Thursday.

The third-quarter growth compares with the 0.6 percent on-quarter expansion in the second quarter and the 0.3 percent gain in the first quarter.

Private spending rose 0.3 percent on quarter in the July-September period while government spending inched up 0.1 percent. Construction investment expanded 2.2 percent while facilities investment fell 2.7 percent.

On a yearly basis, Korea's economy advanced 1.4 percent in the third quarter, following 0.9 percent growth for both the second and first quarters.

Asia's fourth-largest economy has been on a recovery pace since it contracted 0.3 percent in the fourth quarter last year.

For the full year, the central bank expects the economy to grow 1.4 percent, down from 2.6 percent growth in 2022 and 4.3 percent in 2021.

Korea's economy has been facing growing uncertainty amid worries more than aggressive monetary tightening in major countries, including the United States, escalating geopolitical tensions, rising household debt and a slowdown in China's economy, the country's top trading partner.

The central bank held its key interest rate steady at 3.5 percent for the sixth straight time this month as it weighs a slowdown in growth amid moderating inflation.

The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]