South Korean tech giant Samsung Electronics reported a 31-percent drop in third-quarter profit on Thursday after a global economic downturn slashed appetite for consumer electronics.

Samsung's operating profit fell to 10.85 trillion won ($7.7 billion) for the July-September quarter, from 15.8 trillion won a year earlier, the first year-on-year decline in nearly three years.

Profit in its chip business fell to 5.12 trillion won from 10.07 trillion won a year earlier.

Tech firms such as Google-parent Alphabet, Microsoft, and Facebook-parent Meta also reported poor quarterly results this week.

Until the second quarter of this year, Samsung, along with other tech companies, significantly benefited from strong demand for electronic devices, as well as chips that power them, during the COVID-19 pandemic.

But the global economy is now facing multiple challenges, including soaring inflation, rising interest rates and the growing threat of a broad debt crisis.

"In 2023, demand is expected to recover to some extent, but macroeconomic uncertainties are likely to persist," Samsung said in a statement.

The world's biggest smartphone maker said profit in its mobile business fell slightly to 3.24 trillion won from 3.36 trillion won a year earlier.

It forecast fourth-quarter demand for smartphones and wearables will increase from the previous quarter despite economic instability, as the year-end holiday season approaches.

(With input from Reuters, AFP)