In its preliminary assessment on Thursday, the Bank of Korea reported that South Korea's gross domestic product (GDP) experienced a marginal increase of 0.1 percent on a seasonally adjusted basis for the third quarter of 2024. This figure fell short of the anticipated 0.5 percent growth, following a 0.2 percent decline in the previous quarter.
In terms of real gross domestic income (GDI), there was an improvement of 0.5 percent compared to the prior quarter.
From a spending perspective, private consumption experienced a 0.5 percent rise, driven by heightened expenditures on both goods, such as motor vehicles and communication equipment, and services, including health and transport services. Government consumption also saw a 0.6 percent increase, spurred by enhanced spending on social security benefits in kind, notably healthcare benefits.
The construction investment sector contracted by 2.8 percent, with downturns in both building construction and civil engineering. However, facilities investment surged by 6.9 percent, largely fueled by increased expenditures on machinery, including semiconductor manufacturing equipment, and transportation equipment, such as aircraft.
On the trade front, exports decreased by 0.4 percent due to a decline in the exportation of motor vehicles and chemical products. Conversely, imports grew by 1.5 percent, buoyed by an uptick in machinery and equipment imports.
From a production standpoint, the agriculture, forestry, and fishing sectors grew by 3.4 percent, driven by a rise in livestock production. The manufacturing industry expanded by 0.2 percent, supported by gains in transportation and machinery equipment sectors. The supply of electricity, gas, and water increased by 5.1 percent, attributed to a rise in electricity supply.
Construction witnessed a decrease of 0.7 percent, primarily due to a downturn in building construction activities. However, the services sector grew by 0.2 percent, with notable developments in human health, social work, and transportation and storage sectors, which outweighed decreases in wholesale and retail trade as well as accommodation and food services.
On an annualized basis, GDP expanded by 1.5 percent, which is below the forecasted 2.0 percent rise and follows a 2.3 percent increase in the preceding quarter.
