South Korea’s GDP growth beats forecasts amid AI boom

Asia’s fourth-largest economy grows 3.4 percent year-on-year amid strong semiconductor demand.Published On 27 Oct 202627 Oct 2026South Korea’s economy grew much faster than expected in the July-September quarter amid booming demand for chips used in artificial intelligence (AI).Gross domestic product (GDP) expanded 1 percent on a quarterly basis, or 3.4 percent year-on-year, advance estimates released by the Bank of Korea showed on Tuesday.Recommended Stories list of 4 itemslist 1 of 4Bolsonaro’s party accepts Brazil election after Trump calls vote ‘rigged’list 2 of 4Trump suggests renaming the Atlantic Ocean the ‘American Ocean’list 3 of 4Russia halts strikes on Ukraine’s Kherson as Oleshky ceasefire takes effectlist 4 of 4Moroccan police intercept migrant swimming back towards Ceutaend of listThe Bank of Korea forecast in August that GDP would grow 0.3 percent in the third quarter.Exports, which account for about 45 percent of South Korea’s GDP, rose 2.3 percent quarter-on-quarter, driven by semiconductors, machinery and electrical equipment, according to the central bank.Investment in facilities and intellectual property rose 4.1 percent and 2.3 percent, respectively, while inve...