SEOUL, November 26 (AJP) -SEOUL, November 26 (AJP) - The South Korean economy performed third-best among 26 economies of the Organization for Economic Cooperation and Development (OECD) in the third quarter, according to preliminary compiling by OECD, the Bank of Korea said Wednesday.
Korea’s real GDP grew 1.166 percent in the July–September period, ranking third out of 26 countries that had released preliminary estimates,
Israel topped the list with 2.967 percent growth, driven largely by a sharp rebound from a –1.1 percent contraction in the second quarter. Indonesia, continuing its streak of robust expansion, placed second at 1.216 percent.
China recorded 1.1 percent growth, performing behind Korea’s quarterly rate for the first time in more than three years — since the second quarter of 2022.
Korea’s third-quarter performance marks a dramatic turnaround from earlier this year. In the first quarter, GDP fell –0.219 percent, weighed down by weak consumer sentiment following the national emergency decree, placing Korea 34th among 37 economies. The economy rebounded in the second quarter, expanding 0.675 percent on the back of strong exports despite cross-tariff shocks from the United States, lifting Korea’s ranking to 10th.
The Bank of Korea is expected to raise its 2025 growth outlook in its revised economic forecast on Thursday.
Jungwoo Park, economist at Nomura Securities, in its recent report observed rising equity and housing prices are generating a wealth effect that will help revive consumption. “Growth next year is likely to outpace Korea’s potential growth rate (of around 1.8 percent),” he said.
He perceived that the Bank of Korea’s rate-cutting cycle is effectively over. “We expect the BOK to support the government’s expansionary fiscal stance and keep the policy rate unchanged at 2.50 percent through the end of next year,” he said.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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