S. Korea's economy grew by 1.3% in Q1 amid strong exports, increased spending

1분기 경제 성장률 1.3% 수출•건설투자 회복 뚜렷

Continuing with the nation's economy, South Korea's GDP growth went up by more than 1 percent in the first quarter of this.
This has been led by an increase in construction investment, but officials say this boost could be temporary
Our Ahn Sung-jin with more.

The pace of South Korea's economic growth has been picking up.
Data from the Bank of Korea on Thursday showed that in the first quarter of 2024, the country's GDP, an indicator of its total output of goods and services, increased by 1-point-3 percent compared to the previous quarter.
This is the highest on-quarter increase since the fourth quarter of 2021 when GDP grew by 1-point-4 percent.
It is also a more than 3 percent growth compared to the same quarter in 2023.
Increased construction investment and a recovery in exports contributed to the growth.
Civil engineering and building construction showed a strong performance while exports of IT products such as phones propelled the increase.
An official at the central bank explained the reasons behind the growth.

"On top of improved consumer sentiment, the release of new smartphone models boosted private spending. However, growth in the construction sector may be temporary coming from a base effect of low investment last quarter and more construction being wrapped up with the nicer weather. Project financing risks still remain which may bring down the growth."
Both consumer and government spending grew by nearly 1 percent as expenditure on goods and services such as restaurants and accommodation rose.
On the production front, manufacturing went up by 1-point-2 percent with an increase in chemical products and transportation equipment, while wholesale and retail services also saw production increase.
The central bank official suggests that external factors could lower economic growth.
"With increased geopolitical risks in the Middle East as well as concerns over the exchange rate and oil prices, the final projections for economic growth may be slightly reduced."
As data released on Thursday is the preliminary quarterly estimates, the final figures on the upcoming national accounts may be altered.

Ahn Sung-jin, Arirang News.

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2024-04-25, 12:00 (KST)