SEOUL, South Korea (AP) — South Korea’s economic growth slowed to 3.2 percent in the third quarter, the lowest in five quarters, as weakness in exports and spending by companies offset the boost from government stimulus.
The Bank of Korea said Friday that Asia’s fourth-largest economy slowed from 3.5 percent growth in the April-June quarter.
Capital expenditure contracted 0.8 percent from the previous quarter and exports turned negative while government spending contributed significantly to third quarter growth. Consumer spending rebounded after a deadly ferry sinking in April that shocked the nation.
The central bank lowered has lowered its benchmark interest rate to a record low of 2 percent and downgraded its growth forecast for this year and next citing a weak recovery in capital expenditure.
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