Seoul: South Korea's economy expanded at its quickest rate in nearly four years during the third quarter, driven by strong exports and improving private consumption, as shown by data from the central bank.

According to Yonhap News Agency, the real gross domestic product (GDP) increased by 1.3 percent in the July-September period compared to the previous quarter. This figure is 0.1 percentage point higher than earlier estimates, based on preliminary data from the Bank of Korea (BOK).

The latest growth rate represents the fastest quarterly expansion since the fourth quarter of 2021 when the economy grew by 1.6 percent. It also marks an acceleration from a 0.7 percent increase in the second quarter and exceeds the BOK's prior projection of 1.1 percent.

Year-on-year, the economy expanded by 1.8 percent in the third quarter, a significant rise from the 0.6 percent growth in the second quarter. Earlier this year, South Korea's GDP unexpectedly contracted by 0.2 percent in the first quarter due to a domestic political crisis triggered by former President Yoon Suk Yeol's martial law declaration and uncertainty from U.S. President Donald Trump's tariff measures, which impacted consumer sentiment and exports.

Since then, the economy has regained momentum, bolstered by government stimulus and a strong export performance, particularly in the semiconductor sector. In its latest outlook released last week, the central bank increased its growth projection for this year by 0.1 percentage point to 1 percent and forecast a 1.8 percent expansion for 2026.

Reflecting a more optimistic growth forecast, the BOK has maintained its benchmark interest rate steady for the fourth consecutive meeting amid a weak currency and an unsettled housing market.