South Korea growth tops forecast as chip boom masks weak demand
A contraction in consumption underscored an increasingly uneven expansion that may complicate the trajectory for further interest-rate hikes.
South Korea's economy outpaced expectations in the third quarter, driven by a surge in artificial intelligence-powered chips boosting exports and investment, according to the Bank of Korea. The country's gross domestic product (GDP) expanded by 1% in the three months ending September from the previous quarter, surpassing the median forecast of 0.8% in a Bloomberg survey of economists.
This growth marked the strongest quarterly expansion since the second quarter of the year, when the economy grew 3.4% year-on-year, exceeding the previous forecast of 3.1%. However, the report also highlighted a slowdown in consumption, signaling an uneven expansion that could complicate future interest-rate hikes.
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- S. Korea's Q2 current account surplus ranks 2nd on robust chip exports en.yna.co.kr
- Korea's economy grows 1% in Q3 on chip exports, beating forecasts koreatimes.co.kr
- Shopee Korea partners Hyundai Glovis on K-beauty exports techinasia.com
- South Korea's economy grows 1.0% in 3rd quarter on chip boom asia.nikkei.com
