South Korea’s economy grew 1% in Q3 as private spending fell

South Korea’s economy grew 1% in the third quarter, beating the central bank’s earlier 0.3% forecast.

The rebound was led by strong semiconductor exports and equipment investment, which helped manufacturing grow.

Government spending also increased, while household consumption fell for the first time since late 2022.

People spent less on goods such as cars and home appliances, as well as services including finance and dining.

This means the growth was not widely felt by households: the government contributed 0.8 percentage points to growth, while the private sector contributed 0.2 points.

Imports of oil and semiconductor-making equipment also rose, limiting the contribution from exports after imports were subtracted.

The figures are an initial estimate from the Bank of Korea; the story says the outlook depends in part on whether better trade conditions continue and domestic spending recovers.