South Korea’s real gross domestic product (GDP), a vital measure of the economy, grew by 0.1% on-quarter during the July-September period, according to data released by the Bank of Korea (BOK) on October 24th. Since early 2023, the country’s GDP growth remained positive for five consecutive quarters, eventually marking a 1.3% rise in the first quarter of 2024 before dropping 0.2% in the next. However, the most recently released third quarter figure fell significantly short of the 0.5% growth previously forecasted by the central bank, casting doubts on whether the foreseen 2024 yearly GDP growth of 2.4% would be realized. As per the BOK report, private consumption in the third quarter grew by 0.5%, allowing domestic demand to rebound from the 0.2% contraction in the previous period. Much of this rise was centered around increased spending on cars and communication devices, as well as medical and transportation services. The main culprit behind the slower than-expected growth is said to be in the export sector, which dipped by 0.4%, mainly due to a drop in sales of cars and chemical products abroad. This figure is especially unfavorable compared to the 1.2% rise in the previous quarter. With slowing international demand for information technology-related goods and increasing geopolitical tensions, the future of export levels remains uncertain.
