South Korean economy sees rapid turnaround

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The Bank of Korea has announced that the South Korean economy expanded by 2.9% in the third quarter of 2009 – the fastest quarterly rate in more than seven years.

Todaya��s figures have ended a run of three consecutive quarters of negative year-on-year growth.

The news will fuel hopes that Asiaa��s fourth largest economy is seeing signs of a sustainable recovery as the third quarter performance exceeded expectations.

Following the announcement, the benchmark Kospi stock market index in Seoul closed up 1% at 1,657.1.

So far this year, the index has gained 47% this year after plummeting by 41% in 2008.

In a statement, the central bank said: “Industrial output, led by chips and automobiles, posted robust growth in the third quartera��. private consumption and facility investment also improved.”

The news comes just a week after it was revealed that Chinaa��s economy grew 8.9% in the third quarter from a year earlier.

The strong result was due to all sectors performing strongly and was the fastest GDP growth since quarter three last year with many analysts describing Chinaa��s recovery as a�?impressivea�?.

China is currently the worlda��s third largest economy but many analysts believe that it will overtake Japan to become the worlda��s second largest economy in the next two years.

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