South Korea Q2 economic growth fastest in more than a year

Reuters

5 days ago

SEOUL, July 24 (Reuters) - South Korea's economy grew at the fastest pace in more than a year in the second quarter, beating market expectations, buoyed by rebounding consumer spending and a surge in exports driven by robust demand for technology.
Gross domestic product expanded a seasonally adjusted 0.6% in the April-June period from a quarter earlier after contracting 0.2% in the preceding three months, advanced central bank estimates showed on Thursday.
It was stronger than the median 0.5% increase forecast in a Reuters poll and the fastest quarterly growth since the first quarter of 2024.
South Korea held a snap presidential election on June 3, after the constitutional court in early April upheld former President Yoon Suk Yeol's impeachment over his failed martial law order, ending six months of political uncertainty.
By expenditure, private consumption rose 0.5% over the quarter, while construction and facility investments each fell 1.5%, according to the Bank of Korea.
Exports jumped 4.2%, led by semiconductors, after falling 0.6% in the previous quarter amid U.S. tariff uncertainty. It was the strongest quarterly performance since the third quarter of 2020.
U.S. President Donald Trump's 25% "reciprocal" tariffs against South Korea introduced in early April are currently paused until August 1 for trade negotiations, while some industries like autos and steel have been hit by high product-specific tariffs.
On an annual basis, Asia's fourth-largest economy grew 0.5% in the second quarter, compared with no growth in the first quarter and a 0.4% expansion expected by economists.