S Korea’s Economy Grows 0.6 Percent in Second Quarter

Seoul: Data from the Bank of Korea showed today, Tuesday, that the country's gross domestic product grew by 0.6 percent during the second quarter of this year compared with the previous quarter, driven by strong exports of products related to artificial intelligence applications. According to Yemen News Agency, the South Korean News Agency "Yonhap" quoted the bank as saying that the growth was in line with the preliminary estimates issued last July. The bank raised its estimate for growth in investment in construction and innovation projects by 0.1 percentage point and lowered its estimate for government consumption growth by the same amount. The South Korean economy had contracted by 0.1 percent in the final quarter of last year. However, it recorded growth of 1.8 percent in the first quarter of this year. On an annual basis, the economy grew by 3.7 percent in the second quarter, compared with growth of 3.8 percent in the first quarter. Yonhap indicated that South Korea's exports rose by 1.3 percent on a quarterly basis during the second quarter, driven by strong global demand for semiconductors, machinery, and equipment. This was in contrast to a growth of 5.9 percent in the first quarter. The Bank of Korea earlier raised its forecast for economic growth this year to 3.3 percent. This forecast was supported by strong exports and the continuation of the boom cycle in the semiconductor sector. The bank stated that the economy needs to grow by at least 0.2 to 0.3 percent during the second half of the year to achieve the targeted growth rate of 3.3 percent.