[Breaking] Q1 Economic Growth Rate 0.3%... Sustained by Private Consumption

[Image source=Yonhap News]

The Bank of Korea announced on the 2nd that the real Gross Domestic Product (GDP) growth rate for the first quarter of this year (preliminary figure, quarter-on-quarter) was recorded at 0.3%. This is the same level as the flash estimate released on April 25.

Growth in the first quarter was driven by consumption. Private consumption increased by 0.6% compared to the previous quarter due to a rise in services, and government consumption rose by 0.4% as spending on goods decreased but social security in-kind benefits increased. Construction investment increased by 1.3%, mainly centered on building construction.

On the other hand, facility investment decreased by 5.0% due to a decline in machinery. Exports increased by 4.5%, led by automobiles and other transport equipment, while imports rose by 4.2% due to an increase in chemical products.

Compared to the flash estimate, construction investment (up 1.1 percentage points) was revised upward, while facility investment (down 1.0 percentage point) was revised downward.

The real GDP for last year (preliminary figure) announced on the same day grew by 2.6% compared to the previous year. Although construction and facility investments decreased and the growth in exports and imports slowed, the increase in private consumption expanded.

This content was produced with the assistance of AI translation services.