The presidential office on Thursday evaluated the economic gain estimate for the first quarter as a “surprise,” hinting at revising up the government’s growth forecast for this year from 2.2 percent.
According to preliminary data released by the Bank of Korea earlier in the day, the country’s real gross domestic product — a key measure of economic growth — for the January-March period expanded at a higher-than-expected rate of 1.3 percent on-quarter. On a yearly basis, the economy advanced 3.4 percent in the cited period.
“This marks the highest growth in four years and six months, excluding the COVID-19 period of 2020-2021,” Sung Tae-yoon, director of national policy at the presidential office, said during a press briefing.
Sung further emphasized the significance of the growth, noting that it was not government-led but driven by the private sector, alongside rebounds in spending, construction and investment.
Construction investment, for instance, increased by 2.7 percent in the first quarter, a shift
from the previous quarter’s 4.5 percent dip, the data showed.
“Given the ongoing improvement in exports and the gradual expansion of domestic consumption recovery, the growth momentum is forecast to continue to some extent,” Sung said.
Furthermore, Sung hinted at moving up the 2024 growth outlook of 2.2 percent for 2024.
“Domestic and international institutions such as global investment banks are also revising the growth forecasts for our economy this year,” he said.
Source: Yonhap News Agency