South Korea 2nd quarter GDP growth exceeds market forecast

By Tuba Ongun

ANKARA (AA) - South Korea’s gross domestic product (GDP) grew 0.6% quarter-on-quarter in the second quarter of 2023, beating market forecast of a 0.5% growth, according to data released on Tuesday.

The GDP growth accelerated from a 0.3% expansion in the first quarter of this year, an advance estimate from the Bank of Korea (BOK) showed.

On the production side, agriculture, forestry and fishing rose by 5.5% compared to the previous three-month period in April-June.

Manufacturing increased 2.8% and services by 0.2% in the same period.

Electricity, gas and water supply, on the other hand, plunged 6% on quarterly basis from April to June and construction declined by 3.4%.

On the expenditure side, private spending dropped 0.1% and government consumption tumbled 1.9%.

Exports fell 1.8% quarter-on-quarter, owing to reduced exports of petroleum products and transportation services, although semiconductors and motor vehicles increased.

Imports dropped by 4.2%, mainly due to decreased imports of crude oil and natural gas.

On a yearly basis, South Korean economy grew 0.9% in the second quarter.