South Korea warns of downside risks to exports, growth amid weak GDP data

SEOUL — Finance Minister Choi Sang-mok has warned of growing uncertainties regarding exports and downside risks to economic growth and vowed to respond with extra vigilance, his office said on Friday.

Choi made the remarks during a meeting with reporters in Washington, D.C., on Thursday (U.S. time) after the Bank of Korea (BOK) data showed that the gross domestic product expanded 0.1 per cent on-quarter in the July-September period, lower than market expectations.

“Downside risks regarding the prospect for this year’s economic growth have grown,” he was quoted as saying.

Choi, who is double-hatted as deputy prime minister, also hinted at a possible reduction to the government’s growth forecast for the year, noting the government may revise its growth outlook when it reviews its economic policies in December, reports Yonhap news agency.

The government earlier expected the economy to grow 2.6 per cent in 2024, while the BOK presented a 2.4 per cent expansion.

Regardless of the fourth-quarter data, however, this year’s growth is expected to be still higher than the potential growth rate of 2 percent, Choi insisted.

As for exports, the minister pointed to growing uncertainties and said the government will respond “with extra vigilance.”

Meanwhile, Sang-mok called for close market monitoring amid growing uncertainties at home and abroad as South Korea reported weaker-than-expected economic growth in the third quarter, his office said.

Choi made the remarks during a meeting with officials of his ministry, after the Bank of Korea data showed that gross domestic product expanded 0.1 per cent on-quarter in the July-September period, lower than market expectations.

On a yearly basis, the economy grew 1.5 per cent in the third quarter, slowing from 2.3 per cent growth in the second quarter.