S. Korea’s GDP grows 1.3% in Q1 ’24

South Korea’s economy maintained its upward momentum in the first quarter of 2024, expanding by 1.3 per cent compared to the previous quarter, according to data released by the Bank of Korea on Wednesday.

Real gross national income (GNI) increased by 2.4 per cent in the first quarter compared to the previous quarter, taking into account income earned by Korean residents abroad.

On the expenditure side, private consumption, which reflects household spending, increased 0.7 per cent. This growth was driven by spending on both goods, such as clothing, and services, including restaurants and accommodation.

Government consumption also rose slightly by 0.8 per cent, primarily due to increased spending on goods.

The construction sector emerged as a significant growth driver, with overall investment expanding by 3.3 per cent. This positive trend was fuelled by increases in both building construction and civil engineering projects.

However, facilities investment, which represents spending on machinery and equipment, declined by 2.0 per cent. This decrease was mainly due to a drop in investment related to transport equipment.

Exports, especially in IT products like semiconductors and mobile phones, and petroleum products, drove a 1.8 per cent increase in the economy. While, imports fell by 0.4 per cent mainly because of lower imports of natural gas and electrical equipment.