South Korea’s real gross domestic product (GDP) expanded by 1.7% in the first quarter compared to the previous quarter, marking the strongest growth since the third quarter of 2020.
Record Growth Driven by Exports
This figure more than doubles the prior quarter’s 0.9% increase and stands as the highest in over five years and six months. Year-over-year, GDP rose 3.7%, the largest advance since the fourth quarter of 2021. Semiconductors fueled this surge through robust export performance.
Overall exports climbed 5.1% from the previous quarter and 10.3% from the same period last year. Imports increased 3% quarter-on-quarter and 7.7% year-over-year.
Sector Performance Highlights
Construction activity grew 4.1% quarter-on-quarter and 2.9% year-over-year. Manufacturing expanded 3.9% from the prior quarter and 6.4% annually, with computers, electronics, and optical instruments leading gains.
Services edged up 0.4% quarter-on-quarter and 3.3% year-over-year. Electricity, gas, and water supply rose 4.5% from the previous quarter but fell 4.3% compared to last year, centered on water and raw materials recycling operations.
GNI Outpaces GDP, Cautious Outlook
Gross national income (GNI) surged 7.5% quarter-on-quarter and 12.3% year-over-year, significantly exceeding GDP growth. Bank of Korea data released on the 22nd underscores semiconductors’ pivotal role, though imports tempered net export contributions.
Analysts anticipate full-quarter GDP growth near 0.9%, reflecting balanced export and import dynamics.
