According to the Bank of Korea, published on Thursday, the country's economic growth rate remained low in the third quarter, as along with an increase in spending efficiency, the volume of investment decreased.
Gross domestic product increased by 0.6 percent in the third quarter and in the second.
In annual terms, the economic slowdown has exceeded expectations and reached the 2009 minimum. Growth slowed from 2.8 percent in the second quarter to 2 percent in the third. Analysts predicted a decline to 2.3 percent.
Previously, the central bank lowered its target level of growth for this year to 2.7 percent.
The data on the distribution of GDP in relation to expenditures reflected an increase in population spending by 0.6% in quarterly terms, mainly due to increased consumption of durable goods and goods with a limited period of use.
State consumption increased by 1.6 percent, including an increase in expenditures on health care payments. Investment in construction decreased by 6.4 percent, while investment in the manufacturing sector decreased by 4.7 percent, helped by a reduction in investment in equipment.
Exports rose by 3.9 percent due to an increase in semiconductor exports meanwhile, imports fell by 0.1 percent due to a reduction in equipment imports.
According to economics economists Alex Holmes and Shilan Shah, the growth rate of South Korea’s economy was low in the third quarter, and this trend will continue.
Probably, the economic growth rate will continue to decline in the next quarters due to the increasing pressure of external and internal factors, experts also said.
According to the latest data, the overall economic growth this year is likely to be 2.7 percent, compared to 3 , 1 percent in 2017. Analysts expect growth to slow down to 2.5 percent in 2019-2020.