The South Korean economy expanded in the third quarter at the fastest pace in seven years backed by rising exports, industrial output and investments to continue leading recovery in the Asian region with China that also grew in the quarter ended September.
The South Korean gross domestic product expanded 2.9% in the third quarter after it grew 2.6% in the previous quarter, while it topped analyst's forecasts that referred to 1.9%. The Korean economy grew 0.6% in the third quarter from a year earlier compared with a previous -2.2%, while it was anticipated to shrink 0.3%.
The Korean exports was the main pillar for economic growth as it rose 5.1% in the third quarter coming after an incline by 14.7% in the quarter ended July. Rising exports helped to witness an improving business sector as we saw Hyundai Co the nation's largest automaker declaring net income of 979.2 billion won ($827 million) in the three months to September.
On the other hand, corporate investments in equipment and factories surged 8.9% in the previous quarter after it gained 10.1% in the second quarter, while private consumption jumped 1.4%, worth mentioning that government spending declined 0.8% and construction investment fell 2.1%.
We should mentioning the role of low interest rates that helped to spur demand for business and personal loans which backed the economy to revive, having in mind that the Bank of Korea slashed its benchmark by 3.25% between October last year and February this year then interest rates was kept at the low record of 2.00%.
Moreover, the Korean government allocated as much as 67 trillion won ($54 billion) as a stimulus package that focused on infrastructure projects, cash handouts for households, besides providing cheap loans and job opportunities.
The government's stimulus spending managed to pump liquidity into the financial system and helped to revive the business sector, noteworthy that the government spent 68% of this year's budget through July to support economic recovery.
After we witnessed the South Korean economy avoiding technical recession when it grew 0.1% in the first quarter then expanding in the following two quarters, a rate hike became anticipated along with a rebounding economy, especially that Mr. Lee the governor of the Bank of Korea said that keeping interest rates at a low level for a long time is not healthy for the economy.
Finally, the Korean economy proved that it is on track leading the Asian region with China towards recovery after the sever impact of the financial crisis the worst since World War II.
The South Korean gross domestic product expanded 2.9% in the third quarter after it grew 2.6% in the previous quarter, while it topped analyst's forecasts that referred to 1.9%. The Korean economy grew 0.6% in the third quarter from a year earlier compared with a previous -2.2%, while it was anticipated to shrink 0.3%.
The Korean exports was the main pillar for economic growth as it rose 5.1% in the third quarter coming after an incline by 14.7% in the quarter ended July. Rising exports helped to witness an improving business sector as we saw Hyundai Co the nation's largest automaker declaring net income of 979.2 billion won ($827 million) in the three months to September.
On the other hand, corporate investments in equipment and factories surged 8.9% in the previous quarter after it gained 10.1% in the second quarter, while private consumption jumped 1.4%, worth mentioning that government spending declined 0.8% and construction investment fell 2.1%.
We should mentioning the role of low interest rates that helped to spur demand for business and personal loans which backed the economy to revive, having in mind that the Bank of Korea slashed its benchmark by 3.25% between October last year and February this year then interest rates was kept at the low record of 2.00%.
Moreover, the Korean government allocated as much as 67 trillion won ($54 billion) as a stimulus package that focused on infrastructure projects, cash handouts for households, besides providing cheap loans and job opportunities.
The government's stimulus spending managed to pump liquidity into the financial system and helped to revive the business sector, noteworthy that the government spent 68% of this year's budget through July to support economic recovery.
After we witnessed the South Korean economy avoiding technical recession when it grew 0.1% in the first quarter then expanding in the following two quarters, a rate hike became anticipated along with a rebounding economy, especially that Mr. Lee the governor of the Bank of Korea said that keeping interest rates at a low level for a long time is not healthy for the economy.
Finally, the Korean economy proved that it is on track leading the Asian region with China towards recovery after the sever impact of the financial crisis the worst since World War II.
