South Korea’s economic system slowed at a faster-than-expected tempo within the third quarter on weaker funding and subdued shopper spending amid the unfold of the delta variant of COVID-19.
Gross home product grew 0.3% for the July-September interval from the earlier quarter, following a revised 0.8% growth within the second quarter, confirmed preliminary Financial institution of Korea knowledge on Tuesday.
The newest studying missed the media forecast of 0.6% progress for the third quarter by economists polled by The Wall Avenue Journal.
Building funding shrank farther from the previous quarter, as contraction in each personal consumption and facility funding outweighed progress in exports, confirmed the information.
Yr-on-year, the economic system expanded 4.0% within the third quarter after a revised 6.0% growth within the earlier quarter.
The median forecast was for 4.3% progress within the third quarter.
The weaker-than-expected quarterly GDP knowledge got here because the central financial institution is dialing again financial stimulus introduced on by the pandemic. The financial institution lifted the bottom fee in August after 15 months of conserving it at a file low, signaling it might increase it additional.
The central financial institution says the nation’s economic system is on monitor to attain its projected 4.0% progress for 2021 on the federal government’s continued fiscal stimulus and strong export progress.
The pandemic-hit Korean economic system shrank 0.9% in 2020.
https://www.marketwatch.com/story/south-korean-economy-slows-in-third-quarter-271635202907?rss=1&siteid=rss | South Korea’s economic system slows in third quarter