The South Korean economy expanded by 0.1 percent in the third quarter of 2024 amid weak domestic demand and slower export growth, central bank data showed Thursday.

The country's real gross domestic product -- a key measure of economic growth -- increased 0.1 percent in the July-September period from the previous quarter, matching an earlier estimate, according to preliminary data from the Bank of Korea.

The figure was markedly lower than the market expectation of a 0.5 percent gain. The economy expanded 1.3 percent in the first quarter but contracted 0.2 percent in the second quarter.

On a yearly basis, the economy grew 1.5 percent in the third quarter, slowing from the previous quarter's 2.3 percent expansion.

Last month, the central bank lowered its growth outlook for this year to 2.2 percent from its previous forecast of 2.4 percent.

Presenting a bleaker growth outlook for next year, the BOK last month unexpectedly slashed its benchmark interest rate for the second consecutive session while hinting at possible additional cuts down the road.

The weaker-than-expected quarterly growth came as exports contracted 0.2 percent in the third quarter, logging the first quarterly decline since the fourth quarter of 2022.

Imports advanced 1.6 percent, matching the 1.6 percent gain the previous quarter.

Private spending rose 0.5 percent on-quarter in the third quarter, recovering from a 0.2 percent fall the previous quarter, and government spending gained 0.6 percent.

Construction investment sank 3.6 percent in the third quarter, further contracting from the previous quarter's 1.7 percent fall, while facility investment climbed 6.5 percent, the data showed.

The BOK said the sudden political uncertainties following President Yoon Suk Yeol's martial law declaration is forecast to have a limited impact on the country's economic growth, though it remains to be seen how the issue would affect the real economy.

"There have been concerns that uncertainties have grown after the martial law declaration. We take the issue seriously," senior BOK official Kang Chang-goo told a press briefing.

"But it is projected to have a limited impact on growth as it was lifted relatively swiftly, though it is too early to judge its impact on the real economy down the road," he added.

Yoon declared emergency martial law in a surprise late-night address Tuesday over what he described as "anti-state forces" trying to disrupt the nation's constitutional order.

After a tense, dramatic night, Yoon lifted the military rule as the National Assembly voted to reject it. The opposition side filed a motion to impeach Yoon. (Yonhap)