South Korea’s real gross domestic product (GDP) grew 0.7 percent in the third quarter from the previous three-month period, further slowing from 0.8 percent pace in the second quarter as both domestic and external demand deteriorated, the Bank of Korea said Tuesday.

According to the GDP data, the July-September GDP valued 377.95 trillion won ($331.9 billion) after seasonal adjustments, up 0.7 percent from the previous quarter.

Except for 1.2 percent growth in the third quarter of 2015, Korea’s economy has been moving in the snail’s pace of zero percent range since the second quarter of 2014.

On a yearly basis, it grew 2.7 percent in the third quarter, compared with 3.3 percent gain in the second quarter.

Multiple whammies hit the fragile economy in the third quarter. The country’s two major manufacturers and exporters received setbacks - Hyundai Motor from lengthy strikes and Samsung Electronics from global recall and discontinuation of its premium phone Galaxy Note7.

The GDP would have suffered more if not for government spending increase of 1.4 percent through supplementary and expanded fiscal budgeting. Due to solo vitality in the housing market amid loose liquidity and loan regulations, construction investment gained 3.9 percent on quarter.

Otherwise, overall domestic and external demand contributing to the real economy turned from bad to worse.

The growth in private consumption slowed to 0.5 percent in the third quarter compared with 1.0 percent, while facility investment - or corporate spending - contracted by 0.1 percent from 2.8 percent growth in the second quarter.

Exports rose by 0.8 percent, slowing from 1.1 percent pace in the previous quarter. Imports gained 2.4 percent in the third quarter, more or less unchanged from 2.6 percent rise in the previous three-month period.

Manufacturing decreased by 1.0 percent, the biggest dip since 2.5 percent contraction in the first quarter of 2009 as ill fortunes at Samsung and Hyundai further hurt industrial activities.

By Na Hyun-joon

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