SEOUL (Reuters) -South Korea’s economy grew in the third quarter by the fastest pace in a year and a half, advanced central bank estimates showed on Tuesday, helped by strong exports and solid private consumption as government stimulus measures boosted spending.
Gross domestic product expanded 1.2% in the third quarter from three months earlier on a seasonally adjusted basis, faster than the 0.9% expected in a Reuters poll and after expanding 0.7% in the preceding three months.
The pickup was driven by solid domestic consumption, which rose 1.3% quarter-on-quarter, after the government’s supplementary budget and cash subsidies rolled out under President Lee Jae Myung’s government, while capital expenditure rebounded by 2.4% in the third quarter after contracting earlier.
Exports expanded 1.5% quarter-on-quarter, slower than the 4.5% growth in the second quarter.
On an annual basis, South Korea’s economy grew 1.7%, compared with a 0.6% expansion in the second quarter.
(Reporting by Cynthia KimEditing by Ed Davies)
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