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South Korea's Q1 economic growth highest in 7 years
South Korea’s economic growth in the first quarter stood at 7.8 percent, the highest in almost a decade, the government announced on Apr. 27.
The national economic recovery seems to have gained more ground over the first three months, helped by balanced growth in public and private sectors, including exports and domestic consumption, said the Ministry of Strategy and Finance.
This quarterly growth is the highest in seven years and three months, since 8.1 percent of growth was recorded in the fourth quarter of 2002, according to the central bank.
From the previous quarter, the growth went up 1.8 percent, maintaining the upward trend, which had started in the first quarter of 2009.
The growth this time is higher than the central bank's previous forecast released on Apr. 12. The bank then expected the GDP would be up 7.5 percent from the previous year, and 1.6 percent from the previous quarter.
By sector, most industries excluding agriculture, forestry and fisheries saw gains and the growth of manufacturing and service industries were steeper than their previous performances. The manufacturing industry in particular expanded 20 percent from 2009 and 3.6 percent from the fourth quarter of 2009.
In terms of spending, investment in construction died down conspicuously, but consumer expenditure continued to increase in the first quarter, growing 6.2 percent year-on-year and 0.6 percent quarter-on-quarter. Facilities investment and exports grew by larger margins than before.
The recovery in consumer spending and private investment has proven to have contributed to the first quarter’s growth, said the finance ministry.
Meanwhile, the ministry said the national economy is highly likely to reach the annual growth target of 5 percent without difficulties, considering the latest recovery trend, which looks set to continue into the second quarter as well.
But with the constant threats around, such as increasing prices of raw materials and an unstable global financial market, the government will continuously push policies aimed at maintaining economic recovery and increasing employment, added the ministry.
