11:16 | 30/10/2017 Cooperation
South Korea’s economy kicked into gear in the third quarter as renewed investment in construction and a return to growth for exports helped the country’s gross domestic product expand at the fastest pace in 7 years.
|Illustrative image - Photo: AFP|
GDP expanded 1.4 percent quarter-on-quarter in the July - August period, according to an advance estimate from the Bank of Korea, after growing 0.6 percent in the second quarter. That was ahead of a median forecast from economists surveyed by Reuters of 0.8 percent.
The quarter-on-quarter growth rate was the fastest since the second quarter of 2010.
The annual growth rate was 3.6 percent, up from a pace of 2.7 percent in the June quarter and easily besting expectations of 3 percent growth.
The central bank said quarter-on-quarter growth in private consumption expenditure had risen to 0.7 percent as expenditures on services and durable goods rose. Construction investment expanded 1.5 percent and facilities investment was up 0.5 percent.
Exports grew 6.1 percent quarter on quarter, with rises in exports of semiconductors, chemical products and motor vehicles. Imports rose 4.5 percent on greater shipments of chemical products and petroleum. Both imports and exports had contracted in the second quarter.