South Korea's real gross domestic product (GDP), adjusted for inflation, recovered to a pre-pandemic level in the first quarter thanks to a better-than-forecast economic growth, central bank data showed Tuesday.
The seasonally-adjusted real GDP rose 1.6 percent in the January-March quarter from the previous quarter, according to the Bank of Korea (BOK).
It was far beyond the growth expectations of about 1 percent unveiled by international organizations and investment banks, the Ministry of Economy and Finance said in a separate statement.
The real GDP reached 470.8 trillion won (423.8 billion U.S. dollars) in the first quarter, surpassing 468.8 trillion won (422 billion U.S. dollars) tallied in the fourth quarter of 2019, just one quarter before the COVID-19 pandemic broke out.
From a year earlier, the real GDP went up 1.8 percent in the first quarter, marking the first on-year rebound in four quarters. The seasonally-adjusted real GDP continued to recover from the pandemic-hit slump for the third straight quarter.
In 2020, the real GDP contracted 1.3 percent in the first quarter and 3.2 percent in the second quarter each, before rebounding 2.1 percent in the third quarter and 1.2 percent in the fourth quarter on quarterly basis.
Export, which accounts for about half of the export-driven economy, grew 1.9 percent in the first quarter from three months earlier. It was faster than forecast amid robust demand for locally-made semiconductors and automobiles as well as medical products, the ministry said.
Import gained 2.4 percent in the first quarter after increasing 2.2 percent in the prior quarter. Private consumption, the other key engine of economic growth, advanced 1.1 percent in the January-March quarter, after skidding 1.5 percent in the fourth quarter of last year.
The consumption rebound was attributed to solid demand for durable goods, such as cars and electronic products, and the eased social-distancing guidelines against the pandemic.
The government spending climbed 1.7 percent in the three months ending March 31 compared to the prior three-month period. It was a turnaround from a fall of 0.5 percent in the previous quarter.
Facility investment expanded 6.6 percent in the first quarter, after slumping 2.0 percent in the prior quarter. It came amid the improved business sentiment and the recovery in the global manufacturing industry.
Construction investment added 0.4 percent in the March quarter, after jumping 6.5 percent in the fourth quarter of last year. Investment in intellectual property products went up 0.8 percent in the first quarter from three months ago.
The ministry said the South Korean economy could maintain a better-than-expected growth path this year. The country's outbound shipment surged 45.4 percent in the April 1-20 period from a year earlier, while credit card spending soared 17.5 percent in the 20-day period. ■