People visit a shop at the Myeongdong shopping area during a sales season in Seoul, South Korea, Jan. 16, 2024. (Photo by Paul.J/Xinhua)
SEOUL, April 26 (Xinhua) -- South Korea's gross domestic product (GDP) kept growing for the fifth successive quarter due to an expansion in export and consumption, central bank data showed Thursday.
The seasonally adjusted real GDP, adjusted for inflation, climbed 1.3 percent in the January-March quarter compared to the previous quarter, continuing to expand since the first quarter of 2023, according to the Bank of Korea.
It marked the fastest increase in over two years since the fourth quarter of 2021.
Export, which accounts for about half of the export-driven economy, gained 0.9 percent in the first quarter on the back of robust demand for tech products, especially semiconductors and mobile phones.
It was lower than an increase of 3.4 percent in the third quarter and 3.5 percent in the fourth quarter last year.
Import reduced 0.7 percent in the first quarter on a quarterly basis after rising 1.4 percent in the previous quarter.
Private consumption, another growth engine of the Asian economy, swelled 0.8 percent in the first quarter compared to the previous quarter, higher than a growth of 0.2 percent in the fourth quarter of 2023.
The higher growth was attributable to improved consumer sentiment and expanded outside activities.
The composite consumer sentiment index (CCSI), which gauges the sentiment of consumers over the economic situation, stayed above 100 for the first four months of this year, indicating that optimists outnumbered pessimists.
Construction investment soared 2.7 percent in the first quarter amid favorable weather conditions after tumbling 4.5 percent in the previous quarter.
Fiscal spending rose 0.7 percent, but facility investment diminished 0.8 percent owing to lower demand for transport equipment.
Despite continued GDP expansion, uncertainties remained over the South Korean economy as geopolitical risks in the Middle East raised volatility in the won/dollar exchange rate and global crude oil prices.
Concerns lingered about the still high inflation. Consumer price inflation stayed above 3 percent for the second month through March.
The real estate market remained sluggish due to high borrowing costs. The central bank had left its key rate unchanged at 3.50 percent since January last year after hiking it by 3.0 percentage points for the past one and a half years.
By industry, seasonally adjusted production in the manufacturing sector mounted 1.2 percent in the first quarter compared to the previous quarter.
Production in the construction and the service industries advanced 4.8 percent and 0.7 percent each, but output in the agricultural, livestock and fishery sector retreated 3.1 percent in the cited quarter.
Real gross domestic income surged 2.5 percent in the January-March quarter on a quarterly basis after rising 0.6 percent in the previous quarter. ■