South Korea Q3 GDP growth misses estimates

South Korea’s GDP has expanded 0.1% quarter-on-quarter in Q3 of 2024, following a 0.2% contraction in the second quarter, a preliminary estimate showed.

Yet, the latest figure fell short of market consensus of a 0.5% growth.

Economic growth was driven mostly by higher private and government consumption.

Private consumption rose 0.5% quarter-on-quarter in Q3, as spending on goods (motor vehicles, communication equipment) and services (health services, transport services) went up.

Government consumption rose 0.6% quarter-on-quarter in Q3, driven by increased social security benefits.

At the same time, construction investment contracted 2.8% in the third quarter, while facilities investment grew 6.9%.

In annual terms, South Korea’s economy expanded 1.5% in the third quarter of 2024.

The South Korean Won was little changed on the day against the US Dollar, with the USD/KRW currency pair last trading at 1,380.10.

The Forex pair was holding near a fresh 12-week peak of 1,385.52.