Preliminary estimates from the Bank of Korea show the domestic economy grew at a slower pace than expected during the July to September period mostly due to shrinking investment.<br />Kim Hyesung reports. <br />South Korea's economy expanded zero-point-six percent on-quarter in the third quarter, on par with second quarter growth, contracting from a one percent expansion in the first.<br />The Bank of Korea says, compared to the same period last year, third quarter growth expanded by two percent, the slowest pace of growth in nine years. <br /><br />"Exports and consumption led growth. Final consumption spending contributed zero-point-five percentage points and exports one-point-seven percentage points to GDP growth on-quarter. But construction and facilities investment's contribution to growth recorded a negative one percent and negative zero-point-four percent."<br /><br />Exports expanded by three-point-nine percent in the July to September period thanks to semiconductor exports, while imports fell slightly due to a drop in machinery imports. <br />Private consumption went up on growing purchases of non-durable goods like cosmetic goods and clothes.<br />Government consumption rose one-point-six percent on higher spending in health insurance. <br />But construction investment fell by six-point-four percent, mainly due to tighter housing market regulations.... marking the sharpest fall since 1998.<br />Facilities investment also dropped by around five percent. <br />Gross domestic income edged up zero-point-two percent, a turnaround from second quarter's negative zero-point-eight percent.<br />The third quarter GDP growth data comes a week after the Bank of Korea lowered its growth forecast for this year by two-tenths of a percentage point to two-point-seven percent. <br />To achieve that target, the economy would have to post higher than zero-point-eight-two percent growth in the last quarter.<br />Kim Hyesung, Arirang News. <br />
