Official advance estimates released on Tuesday (Jul 25) showed that South Korea’s economic growth increased in the second quarter, driven by a more favourable net export contribution and slightly outperforming market expectations.
The Bank of Korea said that the gross domestic product (GDP) increased by a seasonally adjusted 0.6% on a quarterly basis in April–June, following a 0.3% rise in the previous three months.
It represented the most quarterly growth since the second quarter of 2022 and outperformed the median 0.5% rise expected in an economist survey conducted by Reuters.
Exports decreased by 1.8% in terms of spending, but imports decreased by 4.2%, resulting in a net growth contribution to the heavily trade-dependent economy of +1.3% points.
Private consumption, facility investments, and construction investments all down from the previous quarter by 0.1%, 0.2%, and 0.3%, respectively, while government spending fell by 1.9%, the most since early 1997.
Compared to an expansion of 0.9% in the January-March quarter and an increase of 0.8% projected by economists, GDP for the quarter was 0.9% higher than the same quarter a year earlier.
According to the most recent projections from the central bank and the government, the fourth-largest economy in Asia will expand by 1.4% in 2023, down from 2.6% in 2022.
South Korea’s economy is a highly developed mixed economy. Its economy ranks 12th in the world and fourth in Asia in terms of nominal GDP. In a few generations, South Korea went from being an underprivileged country to one that was developed and had a high revenue. After the Great slump and the COVID-19 slump, South Korea is still among the developed nations with the fastest growth rates in the world.
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