SEOUL – The Republic of Korea economy grew 0.6 percent in the second quarter on the back of a recovery in private consumption and robust exports, central bank data showed.
The country’s real gross domestic product (GDP) — a key measure of economic growth — rose 0.6 percent in the April–June period from the previous quarter, rebounding from an unexpected 0.2 percent contraction in the first quarter, Yonhap News Agency reported, citing preliminary data from the Bank of Korea (BOK). It exceeded the market expectation of a 0.5 percent gain. On a year-on-year basis, the economy expanded 0.5 percent in the second quarter, compared with zero growth in the first three months of this year. Exports increased 4.2 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. But facility investment dipped 1.5 percent, while construction investment also shed 1.5 percent. The BOK said that net exports and domestic demand each contributed 0.3 percentage point to the economic growth in the second quarter.
The Bank of Korea earlier forecast the Korean economy to grow 0.8 percent this year, following a 2 percent expansion in 2024.
