SEOUL – South Korea’s gross domestic product grew at its fastest pace in seven years in the third quarter thanks to increased exports and construction investment, the Bank of Korea said on Thursday.
GDP in Asia’s fourth largest economy expanded 1.4 percent over the previous quarter, while its economy grew by 0.6 percent, according to data released by the BOK.
This is the highest quarter-on-quarter growth since the second quarter of 2010, when South Korean GDP grew by 1.7 percent.
South Korea’s GDP expanded year-on-year between July and September by 3.6 percent.
The South Korean central bank attributed the growth to rising public spending and investment in construction, as well as increased exports, one of its economic pillars.
Exports, which make up nearly 50 percent of the South Korean economy, grew 6.1 percent in the third quarter of the year, the biggest growth ever registered since the first quarter of 2011, when exports rose 6.4 percent.
Exports of the East Asian country have been increasing since November 2016 thanks to rising oil prices and the recovery of international trade.
Public spending increased between July and September by 2.3 percent, which marked its best growth rate compared to the 2.8 percent registered in the first quarter of 2012.
Construction investment grew 1.5 percent, five times higher than in the April-June quarter.