Q3 GDP expands 0.6 qq Reuters poll 0.5 qq
Exports expands 3.5 in Q3 after declining 0.9 Q2
Exports recovery could wobble amid uncertainties analyst

SEOUL, Oct 26 Reuters South Korea39;s economy fared better than expected in the third quarter with the expansion underpinned by exports, backing the case for the central bank to keep rates on hold for the months ahead.

Gross domestic product GDP grew 0.6 in the JulySeptember quarter from three months earlier, data from the Bank of Korea showed on Thursday, the same pace as the prior quarter and beating a median 0.5 increase forecast in a Reuters survey.

The results likely bolster the BOK39;s view that it needs to maintain restrictive monetary policy for now to bring the economy in for a soft landing after a cumulative 300 basis points of interest rate hikes since August 2021.

It39;s still uncertain whether the economy will achieve 1.4 annual expansion as forecast by the BOK, said Park Sanghyun, chief economist at HI Investment Securities. The business sentiment data out today isn39;t so great and the strength of exports recovery may not be that solid.

In the third quarter, exports expanded 3.5 after declining 0.9 in the preceding three months, while private consumption grew 0.3 after contracting 0.1 in the second quarter.

A breakdown of GDP contribution showed net exports by volume boosted growth by 0.4 percentage points in the third quarter.

Government spending grew 0.1, and construction investment expanded 2.2…