South Korea growth tops forecast as chip boom masks weak demand

What happened: South Korea's economy grew faster than expected in the third quarter, driven by an AI-fueled chip boom in exports and investment, while consumption contracted. Key numbers: GDP rose 1% quarter on quarter versus a 0.8% median estimate; 3.4% year on year versus a 3.1% forecast; prior quarter growth was 0.6% quarter on quarter and 3.7% year on year. Why it matters: The Bank of Korea data show an uneven expansion, with weak consumption that may complicate the path for further interest-rate hikes. Coverage: 3 outlets in 24h

South Korea's economy grew faster than expected in the third quarter, driven by an AI-fueled chip boom in exports and investment, while consumption contracted.

The Bank of Korea data show an uneven expansion, with weak consumption that may complicate the path for further interest-rate hikes.