South Korea’s Economy Accelerates — GDP Growth Surpasses Expectations

South Korea’s economy gathered pace in the third quarter, reducing pressure on policymakers to introduce further monetary stimulus as they balance curbing a heated housing market with assessing potential impacts from upcoming US trade policies.

According to data released by the Bank of Korea on Tuesday, the nation’s gross domestic product (GDP) expanded by 1.2% in the three months through September compared to the previous quarter. The figure exceeded market expectations, which had projected around 1% growth. On a yearly basis, the economy grew 1.7%.

The stronger-than-expected growth highlights resilient domestic demand and steady export recovery, despite global economic uncertainties. Economists suggest that this momentum could prompt the Bank of Korea to maintain its current monetary stance instead of adding further stimulus.

Analysts also noted that the central bank will need to carefully manage its policies to contain risks in the overheated real estate sector, while remaining watchful of how evolving US trade measures might affect South Korea’s export-dependent economy.