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Galaxy Note recall hits South Korea’s 3Q growth

Signage is seen at the Samsung 837 store in the Meatpacking District of Manhattan, New York, U.S., October 10, 2016. REUTERS/Andrew Kelly (2016.mb.com.ph)

Signage is seen at the Samsung 837 store in the Meatpacking District of Manhattan, New York, U.S., October 10, 2016. REUTERS/Andrew Kelly (2016.mb.com.ph)

South Korea’s third-quarter economic growth has slipped to its lowest level in more than a year, with Samsung’s Galaxy Note 7 recall having an impact.

The country’s central bank said Tuesday that Asia’s fourth-largest economy expanded 2.7 percent during the July-September quarter over a year earlier, the slowest pace since the second quarter of 2015.

From the previous quarter, the economy eked out a 0.7 percent growth. On a quarter-to-quarter basis, South Korea’s economy grew less than 1 percent in the past year.

The Bank of Korea said the manufacturing sector declined because handset sales slumped after the Galaxy Note 7 recall.

Samsung Electronics recalled 2.5 million smartphones in September over battery defects. It stopped production earlier this month when its replacements for recalled phones also caught fire.