Seoul, Oct 26 (DPA) South Korea’s economy grew at its fastest pace in seven years in the third quarter, rising 2.9 percent from the quarter before, the central bank said Monday.
The third-straight quarterly growth for Asia’s fourth-largest economy was better than analysts had expected and beat second-quarter growth in the gross domestic product (GDP), which was 2.6 percent.

In comparison to the same quarter a year ago, GDP growth registered 0.6 percent, the Bank of Korea said in releasing preliminary economic figures. It was the first year-on-year growth in a year after a 2.2 percent contraction in the second quarter.

South Korea’s export-dependent economy saw a big jump in manufacturing of 8.7 percent from the second to the third quarters, led by automakers and the information technology sector, particularly chipmakers and the producers of electronic products.

Exports were up 5.1 percent after growth of 14.7 percent in the second quarter while private consumption rose 1.4 percent and capital spending jumped 8.9 percent.

South Korea has weathered the worldwide economic crisis better than most countries, thanks to government stimulus spending, low interest rates and a low won, which makes South Korean exports cheaper abroad.

It narrowly avoided sliding into recession with 0.1 percent growth in the first quarter after registering a 5.1 percent contraction in the final quarter of 2008.

A country is technically regarded to be in a recession when the GDP declines two consecutive quarters compared to the previous quarter.

However, Bank of Korea Governor Lee Seong Tae forecast in mid-October that South Korea’s economy would shrink slightly this year, by less than 1 percent after seeing growth of 2.2 percent in 2008.