FX.co ★ South Korea Q1 GDP Climbs 1.3%

South Korea observed a positive economic shift in the first quarter of 2024. The country's gross domestic product exhibited a growth of 1.3 percent, surpassing predictions of a 0.6 percent growth. This marks a significant change from its previous quarter, the Bank of Korea reported.

The country's real gross domestic income also showed a considerable surge of 2.5 percent compared to the last quarter. Private spending increased by 0.8 percent, mainly boosted by an uptick in goods like clothing, as well as services such as restaurant dining and accommodations.

There was also an uplift in government spending by 0.7 percent due to an increase in the consumption of goods. Additionally, construction investment witnessed a sizable expansion of 2.7 percent, signifying increases in building construction and civil engineering.

However, facilities investment noted a decrement by 0.8 percent primarily owing to a dip in transportation equipment. Export escalated by 0.9 percent, prompted by an increase in exports of IT items including cellular phones. Moreover, a dip by 0.7 percent was noted in imports due to a reduction in imports of electronic equipment.

On the production side, agriculture, forestry, and fishing saw a fall by 3.1 percent mainly due to a decline in crop yields. Conversely, manufacturing exhibited a growth of 1.2 percent, significantly attributed to a surge in chemical products and transportation equipment.

The supply of electricity, gas, and water recorded a rise by 1.8 percent owing to an increase in water supply, waste management, sewerage, and remediation activities. The construction industry also expanded by 4.8 percent due to an uplift in building construction and civil engineering.

Lastly, the service industry reported a growth of 0.7 percent due to an upturn in wholesale and retail trade, and food and accommodation services. On an annual basis, the GDP experienced a growth of 3.4 percent which not only surpassed predictions of a 2.4 percent increase but also accelerated from 2.2 percent from the previous quarter.