The antics of North Korean bully Kim Jong-un and his rantings, threats, nuclear tests and missile launches have not the negative impact on South Korea’s economy or its economic performance, that many economists claimed it would judging by a rebound in GDP reported for the three months to September.
In fact South Korea’s economy grew at its fastest pace in more than seven years in the three months to September thanks to a solid recovery in exports which offset weakness in consumption.
GDP rose 1.4% from the June quarter according to the Bank of Korea. That topped the 0.8% forecast by economists and was the largest quarter on quarter rise since the 1.7% surge in the June quarter of 2010.
The latest surge saw GDP for the year to September accelerate to 3.6% from 2.7% in the second quarter.
Following the GDP data release, a finance ministry official said this year’s growth will be around 3.1% or 3.2% above the July forecast from the ministry of 3%.
The central bank said quarter-on-quarter growth in private consumption expenditure had risen to 0.7% as expenditures on services and durable goods rose.
Construction investment grew 1.5% in the quarter and facilities investment was up half a per cent.
Exports grew 6.1% quarter on quarter, thanks to higher shipments of semiconductors, chemical products and motor vehicles. Imports were 4.5% on greater shipments of chemical products and petroleum.
The rebound in the trade account was made more notable after both imports and exports contracted in the second quarter.
