From a year earlier, the economy expanded 1.5%, also slower than analysts’ forecast of 2%. The BOK may downgrade its forecast for economic growth when it meets next month for a rate decision, Shin Seung Cheol, head of the research department, said in a briefing. The BOK said in August the GDP would grow 2.4% this year. The central bank began its policy pivot earlier this month with a rate cut.
South Korea’s economy barely managed to eke out growth last quarter following an earlier contraction, underscoring the risks from a softening export rally, broadening geopolitical tensions and a US presidential race that may impact trade-reliant nations.
Gross domestic product expanded 0.1% in the three months through September from the previous quarter, the Bank of Korea said Thursday. That figure missed economists’ forecast of a 0.4% expansion by a wide margin and came after a 0.2% contraction in the second quarter.
