SEOUL (Reuters) -South Korea’s economy grew in the fourth quarter of 2023 at the same pace as the previous quarter, official advance estimates showed on Thursday, beating market expectations mostly on a recovery in exports.
Gross domestic product (GDP) for the October-December quarter was 0.6% higher than the preceding three months on a seasonally adjusted basis, according to the Bank of Korea (BOK).
That compares with an expansion of 0.6% in the prior quarter and a median 0.5% increase tipped in a Reuters survey.
A breakdown of the GDP figures showed exports expanded 2.6%, while imports rose 1.0%, bringing net growth contribution of 0.8 percentage points.
Private consumption climbed 0.2% and facility investment jumped 3.0%, but construction investment dropped 4.2%. Government spending was 0.4% higher.
On an annual basis, Asia’s fourth-largest economy in the fourth quarter grew 2.2%, after a gain of 1.4% in the third quarter and compared with a 2.1% rise expected by economists. That was the fastest since the third quarter of 2022.
Exports out of the trade-reliant economy grew for a third straight month in December, led by improving chip sales, although weak demand from China remained a drag.
The Bank of Korea hinted this month that it may pivot towards monetary easing along with its global peers, as the central bank held interest rates steady for an eighth meeting.
In 2023, South Korea’s economy grew 1.4%, a three-year low after gains of 2.6% in 2022 and 4.3% in 2021. The economy is expected to grow 2.1% in 2024, according to the BOK.
(Reporting by Jihoon Lee and Cynthia Kim; Editing by Stephen Coates)