S. Korea's economic growth accelerates in Q1
2011-04-27 17:51:52
South Korea's economic growth accelerated in the first quarter due to solid exports and sustained private consumption, the central bank said Wednesday.
The country's real gross domestic product (GDP), the broadest measure of economic performance, expanded 1.4 percent in the first quarter from three months earlier, the Bank of Korea (BOK) said in a statement.
It was higher than a 0.5 percent on-quarter growth seen in the fourth quarter of last year. The nation's real GDP increased 4.2 percent on-year in the first three months of this year.
Despite reduced capital spending and construction investment, robust exports and improved private consumption helped the Asia's fourth-largest economy grow at a faster pace, according to the BOK.
Exports, which account for about 50 percent of South Korean economy, gained 3.3 percent in the first quarter from three months earlier. An upswing in exports of semiconductors, electronic parts and automobiles helped overseas shipment rise, the BOK said.
Private consumption, one of the main growth drivers, grew 0.5 percent on-quarter during the January-March period as expenditures on durable goods showed upward trends amid slowing demand for non- durables.
Facilities investment, however, declined 0.8 percent on-quarter in the first quarter due to contraction in semiconductor equipment, with construction investment diminishing 6.7 percent on-quarter over the cited period.
A pickup in manufacturing led the economic growth in the first quarter, with services sector also boosting the economy. But, agriculture and construction showed negative growth, offsetting further expansion.
Manufacturing grew 3.2 percent on-quarter in the first three months of this year due to rapid growth of steel and automobile, with services rising 1.3 percent thanks to solid gain in wholesale & retail and financial & insurance, according to the BOK.
Meanwhile, agriculture, forestry & fishing contracted 5.1 percent on-quarter in the first quarter owing to the outbreak of foot-and-mouth disease, with construction sector plunging 6.1 percent.
The country's real gross national income (GNI), gauging the actual purchasing power, diminished 0.6 percent in the first quarter from three months earlier due to higher oil prices, the BOK added.