South Korean Economy's Growth Declines in Q3

The South Korean economy grew by 0.7% in the third quarter of this year from the previous quarter.

    According to preliminary data released on Tuesday by the Bank of Korea, the country's gross domestic product (GDP), which was seasonally adjusted for inflation, stood at 377.952 trillion won in the July to September period.

    The third-quarter growth marked a slowdown compared to the quarter before, which posted a 0.8% growth compared to three months prior. It also marks the fourth consecutive quarter the South Korean economy grew less than 1%.

    The manufacturing industry contracted by one percent, its worst performance in seven-and-a-half years, due mainly to the massive recall of the Galaxy Note 7 by Samsung Electronics and labor strikes by automakers.

    Experts say the South Korean economy could have fared worse in the third quarter without the government’s execution of supplementary budget and a hike in investment by construction companies.

    They predict the economy will remain in the doldrums until early next year, adding that shrinking consumption as a result of the implementation of the antigraft law will be factored into the economy from the fourth quarter.