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South Korea’s economy grew 1.7% in the first quarter from the previous quarter, helped by a surge in exports led by semiconductors.
The Bank of Korea said on the 23rd that real gross domestic product rose 1.7% in the January-March period from the prior quarter, based on a preliminary estimate. The figure exceeded the central bank’s February forecast of 0.9%.
Exports climbed 5.1%, driven by IT products including semiconductors. Imports rose 3.0% as purchases of machinery and equipment and automobiles increased. Private consumption edged up 0.% on higher spending on goods such as clothing, while government consumption rose 0.1% on higher operating expenditures.
Construction investment increased 2.8% as both building and civil engineering work expanded, though it was down 1.4% from a year earlier. Facility investment rose 4.8% as both machinery and transport equipment increased.
Exports led growth. Domestic demand, including consumption and investment, contributed 0.6 percentage points to first-quarter growth, while net exports contributed 1.1 percentage points.
By industry, electricity, gas and water utilities rose 4.5%, led by water supply and raw-material recycling. Agriculture, forestry and fisheries gained 4.1%, led by crop cultivation. Manufacturing rose 3.9%, driven by computers, electronic and optical products. Services increased 0.4%, led by finance and insurance as well as culture and other sectors.
Real gross domestic income, a measure of households’ real purchasing power, rose 7.5%, outpacing the 1.7% increase in real GDP.
* This article has been translated by AI.
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