Revised estimates for South Korean GDP show the economy expanded 0.6 percent on the quarter in the three months to September, unchanged from the advance estimate and also confirming growth was unchanged from the 0.6 percent increase recorded in the three months to June. GDP rose 1.4 percent on the year in the three months to September, also unchanged from the advance estimate and picking up from 0.9 percent in the three months to June.

At their most recent policy meeting last week, officials at the Bank of Korea left policy rates on hold at 3.50 percent. Officials noted that"domestic economic growth has continued to improve at a modest pace" in response to better export performance. They retained their forecast for GDP to grow by 1.4 percent in 2023 but revised their GDP growth forecast for 2024 slightly lower from 2.2 percent to 2.1 percent.

Officials also revised up their inflation forecasts slightly at that meeting. Reflecting these changes to the outlook, they advised that their policy stance should remain"restrictive" until they are satisfied inflation will return to its target level of 2.0 percent. This suggests that, for now, their bias remains in favour of tightening policy rates further rather than a move to unwinding the rate increases delivered in 2022.

Revised third quarter GDP figures are expected to show no change from the prior report at 0.6 percent on quarter and 1.4 percent year-on-year.

GDP data are a comprehensive measure of South Korea’s overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. GDP calculates the total market value of goods and services produced in South Korea within a given period after deducting the cost of goods and services used up in the process of production. Therefore, GDP excludes intermediate goods and services and considers final aggregates only.

Gross domestic product (GDP) can be measured using three approaches, namely the production, income and expenditure approaches. The production measure of GDP is derived from firm level data and estimates the value added by all producing industries in the South Korea economy. The income measure of GDP is derived from earnings data and estimates how the income earned from these producing industries is then distributed throughout the economy as returns to labor, capital and government. The expenditure measure of GDP is derived from data estimating spending on goods and services by final end users and includes consumption, investment and exports minus the value of imports.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.