South korea: South Korea's real gross domestic product (GDP) grew 1.7% in the first quarter of 2026, marking its fastest quarterly growth in 5 and half years, supported by solid exports and resilient domestic demand.

According to Qatar News Agency, exports rose 5.1% compared to the previous quarter on the back of strong global demand for semiconductors, marking the fastest growth since the third quarter of 2020. Private consumption added 0.5%, while government spending edged up 0.1%. Facility investment increased 4.8% on a quarterly basis, and construction investment grew 2.8%.

On an on-year basis, the economy expanded 3.6% in the first quarter, up from the 1.6% growth in the previous quarter, data from the Bank of Korea (BOK) showed. Real gross domestic income (GDI) rose 7.5% on-quarter in the first quarter, marking the highest level since the first quarter of 1988.

In its latest outlook published in February, the BOK had projected the economy to grow 2% in 2026, it has since noted a loss of economic momentum, indicating that performance is likely to undershoot its earlier forecast due to the prolonged conflict in the Middle East.