2021.04.2623:47:00UTC+00South Korea GDP Expands 1.6% On Quarter In Q1

South Korea's gross domestic product gained a seasonally adjusted 1.6 percent on quarter in the first quarter of 2021, the Bank of Korea said in Tuesday's advance estimate.

That beat forecasts for an increase of 1.0 percent following the 1.2 percent gain in the previous three months.

Real gross domestic income GDI increased by 1.8 percent on quarter.

On the expenditure side, private consumption rose by 1.1 percent as expenditures on durable goods (motor vehicles, home appliances) and non-durable goods (food) increased.

Government consumption climbed 1.7 percent, mainly due to increased expenditures on goods.

Construction investment rose by 0.4 percent, as building construction increased. Facilities investment jumped 6.6 percent, led by the growth of investment in machinery and transportation equipment.

Exports advanced 1.9 percent, as exports of goods such as motor vehicles and mobile phones expanded. Imports were up 2.4 percent, owing to increased imports of machinery and equipment and basic metal products.

On the production side, agriculture, forestry and fishing production jumped 6.5 percent, mainly due to increased crop yields.

Manufacturing rose by 2.8 percent, mainly due to increases in computer, electronic and optical products, machinery and equipment, and transportation equipment.

Electricity, gas and water supply advanced 6.2 percent, due to an increase in electricity.

Construction increased by 0.4 percent, owing to an increase in building construction. Services grew by 0.8 percent, led by accommodation and food services and finance and insurance.

On a yearly basis, GDP picked up 1.8 percent - again exceeding expectations for an increase of 1.1 percent following the 1.2 percent contraction in the three months prior.