S. Korea's economy rebounds with 0.6% growth in Q2: BOK
The country's real gross domestic product -- a key measure of economic growth -- rose 0.6 percent in the April–June period from the previous quarter, according to preliminary data from the Bank of Korea.
It exceeded the market expectation of a 0.5 percent gain.
The quarterly growth followed an unexpected 0.2 percent contraction in the first quarter, which was the first decline since the second quarter of 2024, as a domestic political crisis caused by former President Yoon Suk Yeol's martial law declaration and uncertainties stemming from U.S. President Donald Trump's sweeping tariff measures weighed on consumer spending and slowed export growth.
On a year-on-year basis, the economy expanded 0.5 percent in the second quarter, compared with a 0.1 percent contraction during the first three months of this year.
The economic expansion was driven by rising exports and increasing domestic demand.
Exports increased 4.2 percent from three months earlier in the second quarter, led by strong global demand for semiconductors and petrochemical products.
Private spending went up 0.5 percent in the second quarter, as expenditures on automobiles and culture increased, among other things. Government spending gained 1.2 percent.
But facility investment dipped 1.5 percent, while construction investment also shed 1.5 percent.
The BOK said that net exports and domestic demand each contributed 0.3 percentage point to the economic growth in the second quarter.
The BOK expected the South Korean economy to grow 0.8 percent this year amid weak consumption and slowing export growth due to uncertainties stemming from Washington's tariff measures.
In 2024, Asia's fourth-largest economy grew 2 percent. (Yonhap)
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