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South Korea posts fastest economic growth in over two years
South Korea's economy grew 1.3% in the first quarter of 2024 from the previous quarter, the fastest pace since late 2021, the central bank said Thursday.
© Lusa
Economia Coreia do Sul
In a statement, the Bank of Korea (BoK) attributed the increase in gross domestic product (GDP) to the strength of exports and a recovery in household spending and construction investment.
Asia’s fourth-largest economy grew more than twice as fast as in the last quarter of 2023, when it expanded by 0.6%, and at its fastest pace since a 1.4% rise between September and December 2021.
On an annual basis, South Korea’s GDP rose 3.4% in the first quarter of the year, well above the 2.2% annualised increase seen in the last three months of 2023.
Last year, the South Korean economy grew by 1.4%, its slowest pace in three years, due to a slowdown in exports, caused by restrictive monetary policies in much of the world.
Exports, a mainstay of South Korea’s GDP, grew 0.9% in the first quarter, led by mobile phones, while imports shrank 0.7% due to a drop in electronic equipment.
Construction investment rose 2.7%, reversing a 4.5% fall in the last quarter of 2023, and private consumption increased by 0.8%, compared with a 0.2% expansion in the previous three months.
Government spending rose 0.7%, up two-tenths from the September-December period, while corporate investment fell 0.8% due to cuts in transport equipment.
The BoK kept its policy rate unchanged at 3.5%, where it has been since January 2023, after seven consecutive increases to try to curb inflation, which is still running above its 2% target.
The central bank maintained its forecast for the South Korean economy to grow 2% in 2024.
Also Read: South Korean army may ban use of iPhones (Portuguese version)
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