Seoul, Sep 3 (IANS) South Korea’s economy grew faster than earlier estimated in the second quarter driven by strong exports and improved private consumption, central bank data showed on Wednesday.
The country’s real gross domestic product (GDP) — a key measure of economic growth — increased by 0.7 percent in the April–June period compared with the previous quarter, 0.1 percentage point higher than the earlier forecast, according to preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.
“The revision came as some actual performance data from the final month of the quarter was incorporated, showing stronger-than-expected exports, construction investment and intellectual property product investment, while facility investment was revised downward,” the BOK said in a statement.
The second-quarter growth rate marks the highest since the first quarter of 2024, when GDP expanded by 1.2 percent.
On a year-on-year basis, the economy expanded 0.6 percent in the second quarter, which is also 0.1 percentage point higher than the earlier estimate.
The second-quarter growth marked a rebound from a 0.2 percent contraction in the first quarter, which was caused by a domestic political crisis triggered by former President Yoon Suk Yeol’s declaration of martial law in December, along with uncertainties stemming from U.S. President Donald Trump’s sweeping tariff measures.
Private spending has shown signs of recovery as political instability eased, and exports outperformed expectations on the back of strong semiconductor shipments, the BOK said.
In detail, exports increased 4.5 percent from three months earlier in the second quarter, led by strong global demand for semiconductors and petrochemical products.
Private spending went up 0.5 percent in the second quarter, as expenditures on automobiles and culture increased, among other things. Government spending gained 1.2 percent over the cited period.
But facility investment sank 2.1 percent, while construction investment shed 1.2 percent.
“Domestic demand is expected to continue its modest recovery led by the government’s supplementary budget execution and better consumer sentiment,” BOK official Kim Hwa-yong told a press briefing. “But the impact of the U.S.’ tariffs is likely to grow further.”
Last week, the BOK raised its economic growth outlook for this year to 0.9 percent from its previous forecast of 0.8 percent.
“If the economy grows around 0.6 percent on-quarter in the second half, we will be able to achieve 0.9 percent annual growth,” Kim added.
The country’s gross national income (GNI) increased 2 percent in the second quarter from three months earlier.
—IANS
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