South Korea experienced its fastest economic growth in over two years during the first quarter of 2024. The growth was driven by a continued recovery in exports and an increase in construction investment, as reported by the central bank.
Preliminary data from the Bank of Korea (BOK) reveals that the country’s real gross domestic product (GDP) rose by a higher-than-expected rate of 1.3 percent on a quarterly basis in the January-March period. This expansion surpassed the market estimate of 0.6 percent and the 0.6 percent growth seen in the September-December period.
This figure represents the highest growth rate since the fourth quarter of 2021 when the economy expanded by 1.4 percent. On a year-on-year basis, South Korea’s economy grew by 3.4 percent in the first quarter, surpassing the 2.2 percent growth seen in the final quarter of 2023.
Private spending increased by 0.8 percent in the January-March period, compared to a 0.2 percent growth in the previous quarter. Meanwhile, exports grew by 0.9 percent during the first quarter, showing a slowdown from the 3.5 percent gain in the previous quarter. Imports, on the other hand, declined by 0.7 percent compared to a 1.4 percent increase in the previous quarter.
Government spending saw a growth of 0.7 percent, and there was a notable rise of 2.7 percent in construction investment during the first quarter. This marks a significant improvement from the 4.5 percent decline seen in the previous quarter.
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