SEOUL, – Finance Minister Choo Kyung-ho said Thursday the South Korean economy is on track to meet the country’s own growth estimate for this year on the back of the recovering semiconductor sector and exports.
Choo made the assessment after the Bank of Korea’s data showed that the country’s real gross domestic product increased 0.6 percent on-quarter in the July-September period.
The higher-than-expected level raised hope for the country to achieve its growth forecast of 1.4 percent for 2023.
“There are various uncertain factors, such as the Israel-Hamas conflict. But our economy has taken the path of what we’ve forecast,” Choo said during a parliamentary audit of his ministry.
“We expect the growth rate to come to either 1.3 percent in more conservative terms or 1.5 percent if taking a more optimistic view,” he added.
Choo pointed to reviving exports, following a monthslong slowdown, as a reason for the forecast.
During the first 20 days of October, exports rose 4.6 percent on-year on the back of robust shipments of cars and petroleum products, government data showed.
Exports have fallen since October last year, though September logged the smallest on-year decline so far this year.
“The semiconductor sector has shown signs of getting better after bottoming out, and the recovery appears to have gained ground,” the minister said.
Monthly outbound shipments of chips, the country’s key export item, had fallen for 14 months in a row through September, though the country logged the largest monthly export value of US$9.9 billion last month so far this year.
Source: Yonhap News Agency