The economy in the third quarter grew 0.3%. Shown here is a panoramic view of Seoul on Sept. 27 last year as seen from 63 Square in the city's Yeouido neighborhood. (Yonhap News)

By Kim Yeojin and Yoon Hee Young

The economy in the third quarter grew 0.3% from the second.

The Bank of Korea on Oct. 26 said in a report that gross domestic product (GDP) in the third quarter grew 0.3%.

Last year, the economy contracted 1.3% in the first quarter and 3.2% in the second, but returned to positive growth in the third. It has since marked five consecutive quarters of growth: 2.2% in the third and 1.1% in the fourth last year, 1.7% in the first this year, 0.8% in the second and 0.3% in the third.

The central bank said last month in a report on the second quarter's GDP growth that this year's growth rate will reach 4% if the third and fourth quarters each rise 0.6%.

Private consumption in the third quarter saw growth in nondurable goods such as food and beverages but that of services including food, accommodation and entertainment decreased, showing a decline of 0.3%. Government expenditures grew 1.1% led by spending on goods.

Facility investment declined 3% due to stagnation in transportation equipment including cars, and construction investment also fell 3% mainly due to declining civil projects.

Exports grew 1.5% mainly thanks to coal and petroleum goods, machinery and equipment, while imports declined 0.6% due to lower demand for transportation equipment including cars.

By economic activity in a sector, construction saw a big decline and services suffered a slowdown, while manufacturing returned to positive growth.

Agriculture, forestry and fisheries surged 8.8% led by farming, and manufacturing increased 0.2% thanks to growth in machinery and equipment. Electricity, gas and water grew 0.8% led by the gas industry.

The service sector rose 0.4% led by finance and insurance and information and communication. Construction, however, fell 1.7% due to lower volume of civil building projects.

Gross domestic income also saw 0.3% growth since trade conditions in the third quarter remained similar to those of the second.

lvzhen@korea.kr