South Korean economic growth hits five-year highMadeinkoreablog
The country’s economy grew 2.6% in the three months to September over the same period the previous year.
From the second quarter, growth was up 1.2%, marking the biggest jump since 2010.
South Korea’s economy had been held back by the effects of the deadly Mers virus affecting tourism and domestic spending in the first half of the year.
The latest numbers came in ahead of estimates that had seen the struggling exports having more of a dampening effect.
A weakening global demand had hit the country’s exports with car maker Hyundai just yesterday releasing disappointing results.
Yet the central bank’s data showed that a sharp recovery in domestic demand more than offset the drop in exports.
“The export sector remains a weak spot,” Krystal Tan, Asia economist with Capital Economics, said in note.
“But while a strong rebound is unlikely, we expect a modest improvement in external demand, particularly from China, to offer some support in the coming quarters.”
The weaker growth rates over the past quarters had led to the government launching various stimulus packages and the central bank to lower interest rates twice this year hoping to boost growth and spending.