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Data released by the Central Bank of Korea indicate that the adjusted gross domestic product (GDP) in the third quarter grew by 0.6 per cent on a quarterly basis, the same as in the second quarter, but only 0.5 per cent higher than the market expectations. The economy grew by 1.4 per cent a year in the previous quarter, which was 1.1 per cent higher than the market forecast, and by 0.5 percentage points faster than the second quarter.
The economic growth ideal for the third season in the area is largely export-led. Exports increased by 3.5 per cent during the period after a 0.9 per cent decline in the previous season. Private consumption also grew by 0.3 per cent after contracting by 0.1 per cent in the second quarter. According to the Central Bank of Korea, stagnant exports are gradually improving, while consumption, which is hit by inflation, is expected to warm up. According to analysts, it is still difficult to ascertain that the local economy will grow this year up to 1.4 per cent of the central bank’s annual growth expectations, and that the export recovery has been less robust because business confidence data are not ideal.
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