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Korean economy posts 0.1% growth in Q3 as demand and exports slow

Published: 05 Dec. 2024, 10:09 Updated: 05 Dec. 2024, 16:44

Containers are stacked at a port in Korea's southeastern city of Busan. [YONHAP]

The Korean economy expanded by 0.1 percent in the third quarter of 2024 amid weak domestic demand and slower export growth, central bank data showed Thursday.

The country's real GDP — a key measure of economic growth — increased 0.1 percent in the July-September period from the previous quarter, matching an earlier estimate, according to preliminary data from the Bank of Korea (BOK).

The figure was markedly lower than the market expectation of a 0.5 percent gain. The economy expanded 1.3 percent in the first quarter but contracted 0.2 percent in the second quarter.

On a yearly basis, the economy grew 1.5 percent in the third quarter, slowing from the previous quarter's 2.3 percent expansion.

Last month, the central bank lowered its growth outlook for this year to 2.2 percent from its previous forecast of 2.4 percent.

Presenting a bleaker growth outlook for next year, the BOK last month unexpectedly slashed its benchmark interest rate for the second consecutive session while hinting at possible additional cuts down the road.

Yonhap