Korea's economic growth rate slowed to 0.4% in the third quarter of this year.

The annual growth rate is likely to be less than 2%.

The Bank of Korea said on March 24 that its gross domestic product (GDP) was up 0.4 percent from the previous quarter.

YoY growth was 2.0%.

The announcement is a breaking news, and may be revised from future provisional values.

The error between the two is usually around 0.1 percentage point.

Private consumption rose 0.1% in the third quarter.

This is a result of increased consumption of durable goods such as cars.

The consumption of quasi-durable goods, such as overseas travel (overseas consumption) and clothing, mainly in Japan, has decreased.

Government consumption rose 1.2%.

Health care benefits expenditure increased due to 'Moon Jae-in Care'.

An official said, "The high-grade free education also affected the transfer of some of the educational expenses from GDP to private consumption."

Construction investment decreased 5.2% due to the reduction of both building and civil construction.

Facility investment increased 0.5% thanks to transportation equipment.

However, investment in machinery such as semiconductor manufacturing equipment has decreased.

Exports increased 4.1%, led by semiconductors and automobiles.

Imports increased 0.9 percent.

3Q growth missed market expectations.

Experts expected a growth of 0.5 to 0.6 percent.

The background is that the government's fiscal effect has been halved.

The growth rate rebounded in 2Q, as the company squeezed out its finances.

As a result, the government's contribution to growth has fallen from 1.2% in 2Q to 0.2% in 3Q.

The private sector's contribution to growth is 0.2% in 2Q and 0.2% in 3Q.

The positive transition is positive, but not enough to fill the gap in fiscal spending.

An official said, “If we reach the second decimal place, the growth rate in the third quarter will be 0.39%, and 0.97% will be possible in the fourth quarter, so that 2% annual growth is possible.”

In other words, the rate should rebound to 1% in 4Q, but the outlook is dark.

The growth rate rebounded from -0.4% in 1Q to 1.0% in 2Q, as the base effect and fiscal expenditure effects of the reverse growth were large, but this is unlikely in 4Q.

Daishin Securities co-lock researcher said, "An annual 2% growth rate has become impossible. 1.9% seems difficult," he said. "0.4% in the third quarter is similar to" earning shock. "

Real GDI rose 0.1% below GDP growth due to worsening trade conditions.

An official said, “Domestic domestic contributions are not very good, but it is hoped that the negative extent of exports will be reduced.” Semiconductor exports are recovering on a volume basis.

The growth contribution of net exports was 1.3 percentage points, which turned positive in one year since the third quarter of last year (2.0 percentage points).

(yunhap news)