Consumption, investment revival and AI transition key to sustaining economic momentum, official says

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said regarding the 3rd quarter gross domestic product (GDP) results announced on the 28th, "This is the complete economic report card of the new government," adding, "Consumption is reviving, and investment has increased. Exports are also improving amid various circumstances."

Deputy Prime Minister Koo stated this while meeting with reporters at the 'Public Institutions AI Great Transition Workshop' held at Nurigum Square in Sangam-dong, Seoul, on the same day, "The 3rd quarter GDP results are a report card that reflects the government's role through the first and second supplementary budgets."

According to the Bank of Korea's 'National Income (Preliminary)' report released that morning, South Korea's real GDP in the 3rd quarter of this year increased by 1.2% compared to the previous quarter. The growth rate doubled compared to the 2nd quarter (0.6%) and was the highest since the 1st quarter of last year (1.2%).

Deputy Prime Minister Koo said, "To sustain this trend, we must continuously stimulate domestic demand and enhance the potential growth rate of the Korean economy in the mid- to long-term," adding, "In particular, to increase total factor productivity, we must undergo an AI great transition."

He stated, "AI is the best tool for establishing a virtuous cycle in South Korea," adding, "If we undergo an AI great transition, it will further boost Korea's productivity and have the effect of increasing GDP."

When asked if achieving a 1% growth rate this year is possible, Deputy Prime Minister Koo responded, "We will do our best." The government presented its economic growth forecast for this year at 0.9% in August. The Bank of Korea believes that if the 4th quarter growth rate does not fall below -0.1%, a 1% growth is achievable.

Deputy Prime Minister Koo Hails 3rd Quarter GDP Growth