The South Korean economy has posted positive growth in the second quarter of 2021.
The Bank of Korea said on Tuesday that the country's second quarter real GDP growth was up point-seven percent on-quarter…and five.six percent on-year.
This marks the South Korean economy's fourth consecutive quarter of growth after the pandemic led to a downturn in the first two quarters of 2020.
The central bank says private consumption played a big part in the strong results, as it rose by three and a half percent in the second quarter…the biggest growth in 12 years.
The figure was mainly led by rising spending on semi-durable goods such as clothing, as well as in the service sector including food and accommodation.
Government spending also increased by three.nine percent.
On the other hand, exports declined by two percent, mainly due to a decrease in automobiles and LCDs.
"The contribution of private consumption to GDP growth increased while that of exports declined. Looking more closely…contribution to growth by private and government spending has increased sharply from point-eight percentage points in the first quarter to two.three percentage points in the second quarter. Meanwhile…the contribution of net exports declined. This is because imports increased while exports decreased. "
The economic growth in the second quarter exceeded the minimum growth rate that the country needs to achieve its four percent growth target.
The central bank raised its growth forecast this year from three percent to four percent in May… based on the economic recovery up to the first quarter.
Seo Eunkyung, Arirang News.