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S. Korea's economy grows 1.3% in Q1 '24 amid uneven sectors

Photo by Ciaran O'Brien / Unsplash

SEOUL, South Korea — According to advance estimates released by the Bank of Korea (BOK), South Korea's real gross domestic product (GDP) increased by 1.3% in the first quarter of 2024 compared to the previous quarter. 

The country's gross domestic income (GDI) rose 2.5% quarter-on-quarter. 

On the expenditure side, private consumption grew 0.8%, driven by increased spending on goods and services. 

Government consumption expanded by 0.7%, while construction investment increased by 2.7%. 

However, facilities investment declined by 0.8% due to decreased transportation equipment.

Exports rose by 0.9%, driven by IT items such as cellular phones, while imports contracted by 0.7% due to reduced electronic equipment imports. 

On the production side, manufacturing output increased by 1.2%, primarily due to growth in chemical products and transportation equipment. 

Construction expanded by 4.8%, while services grew by 0.7%, led by wholesale and retail trade, accommodation, and food services. 

Agriculture, forestry, and fishing declined by 3.1% due to lower crop yields. 

Year-on-year, real GDP grew by 3.4% in Q1 2024, representing an improvement from the 2.2% growth recorded in Q4 2023.

The Bank of Korea's advance estimates provide a preliminary assessment of the country's economic performance, with more detailed figures expected in the coming months. 

While the overall growth appears promising, the uneven sectoral performance highlights the ongoing challenges the South Korean economy faces in the post-pandemic era.