S. Korea’s Q1 GDP surges 1.7%, doubling forecasts on semiconductor demand
South Korea’s economy recorded its fastest quarterly growth in 5 1/2 years in the first quarter, driven by strong semiconductor exports and steady domestic demand, according to central bank data, Qazinform News Agency cites Yonhap.
Real GDP grew 1.7 percent from the previous quarter, nearly double the Bank of Korea’s forecast and the highest since the third quarter of 2020. The rebound follows a turbulent 2025, when a modest 1 percent total annual growth was recorded.
In January-March, exports jumped 5.1 percent, fueled by global demand for semiconductors, while private consumption rose 0.5 percent. Investment also improved, with facility investment up 4.8 percent and construction up 2.8 percent.
Year-on-year, the economy expanded 3.6 percent in the first quarter, while real gross domestic income surged 7.5 percent on-quarter, marking its strongest increase in decades.
Previously, Qazinform reported births in South Korea surge at a record pace in February.