South Korea’s GRDP continues to expand in Q3 on strong chip and auto output

The growth represents a sharp rebound from the 0.6 percent increase recorded in the previous quarter and marks the first time since the third quarter of last year that GRDP growth has exceeded 1 percent, according to the Ministry of Statistics.

The ministry attributed the recovery primarily to rising exports of key industries, including semiconductors, automobiles, and shipbuilding. Manufacturing and mining output in the greater Seoul metropolitan area climbed 7 percent during the July-September period, driven by robust production of chips and electronic components. This outpaced the nationwide manufacturing growth average of 4.2 percent.

The service sector also showed signs of recovery, with output increasing 2.2 percent from a year earlier. Growth was supported by stronger activity in wholesale and retail trade, as well as the financial and insurance sectors. After slowing to a 0.7 percent increase in the first quarter, service-sector growth improved to 1.2 percent in the second quarter and continued to strengthen in the third.

Notably, the accommodation and food services industry grew 1.6 percent in the third quarter, ending a nine-quarter contraction that began in the second quarter of 2023. Wholesale and retail trade expanded by 4.5 percent, posting growth for the second consecutive quarter.

Meanwhile, the construction sector remained under pressure, with GRDP declining 7.3 percent year-on-year, marking its sixth straight quarter of contraction. However, the ministry noted that the rate of decline has gradually slowed since the first quarter, when output plunged 12.3 percent.

Earlier, Qazinform reported South Korea reports the 16th straight month of rising births in October.