Economic growth in the third quarter was the third highest among 26 major economies. Shown is an aerial view of Busan New Port. (Busan Port Authority)
By Kim Seon Ah
Growth of gross domestic product (GDP) in the third quarter was among the highest among major global economies.
The Bank of Korea (BOK) and the Paris-based Organisation for Economic Co-operation and Development (OECD) on Nov. 26 said GDP growth in the third quarter in a preliminary estimate comparing data from the previous quarter found growth of 1.166%, third among 26 economies that released such data that day.
Israel led with 2.967% thanks to the base effect of a 1.1% contraction in the second quarter. Indonesia was second with 1.216%.
The Chinese economy grew 1.1% over the period, the first time since the second quarter of 2022 that its figure trailed Korea's. Leading European economies such as the U.K. (0.082%), Germany (0%) and France (0.504%) continued to show low growth.
Korea's GDP in the first quarter contracted 0.219% as consumer sentiment weakened in the aftermath of the martial law crisis. The second returned to positive growth to 0.675%, however, ranking 10th worldwide, thanks to strong exports despite shocks from U.S. and Chinese tariffs, with recovery continuing in the third.
BOK is expected to raise its forecast for next year's economic growth in a revised outlook set for release on Nov. 27. Market speculation put the projection in the mid-2% range.
In addition, Nomura Securities of Japan recently raised its forecast for Korea's economic growth next year from 1.9% to 2.3%.
This revision is higher than the 1.8% of the Korean government, Korea Development Institute and International Monetary Fund, 2.1% of the Korea Institute of Finance and 2.2% of the OECD.
Explaining its upward adjustment, Nomura cited the expansion of Korea's current account surplus thanks to the semiconductor "super cycle," or a sustained expansion period stemming from high demand for products and services, wealth effect from rising stock and real estate prices, and recovery in private consumption.
sofiakim218@korea.kr