A container ship sails past buildings in Baesan, South Korea, Thursday, Sept. 22, 2022. Photographer: Seongjoon cho / bloomberg
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South Korea’s economy expanded at its fastest pace in more than a year on Tuesday, as third-quarter gross domestic product expanded with overall domestic growth.
According to Bank of Korea’s advance estimate, GDP grew at 1.7%, compared to 1.5% in the year, compared to 1.5% in the Reuters poll. In the second quarter, the economy grew by 0.6%.
South Korea’s GDP data comes as the country’s negotiations with the Trump administration unravel the details of a trade deal. Last Friday, South Korean President Lee Jae-myeon said in an interview with Bloomberg that the two countries had shared key information from Seoul. 350 billion dollar investment pledge.
“Of course, the US will try to maximize its interests, but it should not be to the extent of causing disaster for South Korea,” Lee said in an interview.
In July, South Korea reached a trade deal with Trump that cut tariffs on the country’s exports to the US, down from 25% previously, it was announced earlier. In return, Seoul pledged to invest $350 billion in the United States
Lee will meet with Trump at the Asia-Pacific Economic Cooperation summit in South Korea later this week.
The Bank of Korea said in a statement last Thursday that the economy continued to support recovery from favorable growth in consumption and exports.
“Going forward, domestic demand is expected to continue to recover consumption, and exports may be favorable for a while thanks to the semiconductor sector, but we expect the impact of US export tariffs to gradually widen,” he said. BOK added.
The central bank forecasts multi-year growth of 0.9% in 2025 and 1.6% in 2026.
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