Seoul: The South Korean economy experienced its fastest growth in more than five years during the first quarter, driven by robust exports and strong domestic demand, as revealed by central bank data.

According to Qatar News Agency, the real gross domestic product (GDP) of South Korea increased by 1.8% in the January-March period compared to the previous quarter. This growth rate is 0.1 percentage-point higher than the earlier estimate, based on preliminary data from the Bank of Korea (BOK).

This figure represents the strongest quarterly growth since the third quarter of 2020, when the economy grew by 2.3%. On an annual basis, the economy expanded by 3.8% in the first quarter, a significant rise from the 1.6% growth recorded in the fourth quarter of the previous year. This annual growth rate is the highest since the fourth quarter of 2021, when the economy expanded by 4.5% year-on-year.

The Bank of Korea attributed the 0.1% upward revision of the first-quarter GDP to updated statistics concerning facility investment and private consumption being factored into the latest figures. Exports surged by 5.9% from the previous quarter, bolstered by strong global demand for semiconductors, machinery, and automobiles.

Facility investment increased by 6.6%, marking the strongest growth in four years, while construction investment rose by 1.4%. Private consumption saw a 0.6% increase, whereas government spending decreased by 0.4%.