SOUTH KOREA’S economy looks set to rebound from a pandemic-triggered recession in a stronger position than most developed nations, aided by an exports recovery, stimulus measures and its relatively successful containment of the coronavirus.

Gross domestic product likely expanded 1.3 percent in the third quarter from the previous three months, according to economists’ estimates ahead of the official release due today. That would confirm the trade-reliant economy has emerged from its first recession since 2003 with relatively limited damage compared with many other parts of the world.

A positive GDP report would set the stage for President Moon Jae-in to pivot from rescuing the economy to stimulating growth and even a longer-term goal of expanding tech sector jobs. The fourth quarter may see activity pick up further should South Korea succeed in keeping the virus under control and a global recovery gathers pace.

The expected recovery has been aided by a rebound in exports led by chips and tech demand, and the expansion of China, South Korea’s biggest overseas market. A brief resurgence of infections during the quarter set back consumption, but the country managed to contain infections with targeted business restrictions, heading off a broader hit to growth.

“We expect a Nike swoosh recovery to continue in the fourth quarter,” said Tieying Ma, economist at DBS Bank. “A further release of pent-up consumer demand could be expected in the fourth quarter, as the second wave infection has started to taper off. Meanwhile, semiconductor exports will likely pick up further.”

Moon last week called for steps to seize on a “golden time” to revitalize tourism and boost consumption. The government resumed the distribution of discount coupons — halted during the second virus wave — to encourage spending, and is promoting an annual shopping event in early November to accelerate the recovery.

(SD-Agencies)