South Korea economy expands 0.6% q/q in Q2, better than expected
FILE PHOTO: A view shows Samsung Electronics’ chip production plant at Pyeongtaek, South Korea, in this handout picture obtained by Reuters on September 7, 2022. Samsung Electronics/Handout via REUTERS /File Photo
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SEOUL, July 23 : South Korea’s economy grew faster than market expectations in the second quarter, driven by a semiconductor export boom that offset a decline in construction investment, advanced estimates from the Bank of Korea showed on Thursday.
Gross domestic product expanded 0.6 per cent in the April-June period from a quarter earlier on a seasonally adjusted basis, faster than a median estimate of 0.4 per cent from a Reuters poll.
While this marks a sharp deceleration from the blistering 1.8 per cent growth logged in the first quarter, the performance proved chip-led growth can keep the economic engine running as policymakers embarked on a tightening cycle with a 25-basis-point hike in July.
On a year-on-year basis, GDP expanded 3.7 per cent from a year earlier, also beating a median estimate of 3.5 per cent.
Growth was driven by a 1.4 per cent gain in exports from a quarter earlier, led by shipments of “semiconductors, machineries and equipment,” the central bank said.
Private consumption expanded 0.4 per cent, while construction investment declined 0.2 per cent from the first quarter.
Source: Reuters
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