Korea's economy grows 0.6 percent on quarter in Q2: BOK data

Containers for import and export are stacked at a port in Busan in January. [YONHAP]

Korea's economy grew at a slightly faster pace in the second quarter of this year than three months earlier despite a slump in exports, central bank data showed Tuesday.
 
The country's real gross domestic product (GDP) — a key measure of economic growth — increased 0.6 percent on quarter in the April-June period, accelerating from a 0.3 percent expansion in the first quarter, according to an advance estimate from the Bank of Korea.
 
Asia's fourth-largest economy has been on a recovery pace since it contracted 0.3 percent in the fourth quarter last year.
 
On a yearly basis, Korea's economy expanded 0.9 percent in the second quarter, the same as the first quarter's on-year gain.
 
The central bank said the second-quarter expansion was led by positive net exports.
 
Positive net exports increased the real GDP, an inflation-adjusted value of private consumption, government spending, investment and net exports, by 1.3 percentage points in the three-month period.
 
The country's exports fell 1.8 percent last quarter due to sluggish demand for petroleum products and transportation services. But exports of semiconductors and motor vehicles gained ground.
 
Imports tumbled 4.2 percent for the quarter, dragged down by a decrease in imports of crude oil and natural gas.
 
Private spending fell 0.1 percent as expenditures on services declined, while expenditures on goods remained flat at the previous quarter's level.
 
Government consumption tumbled 1.9 percent due to a decline in spending on social security benefits.
 
Investment in construction and facilities also dropped 0.3 percent and 0.2 percent, respectively.
 
By industry, agriculture, forestry and fishing jumped 5.5 percent, manufacturing grew 2.8 percent and services went up 0.2 percent.
 
But the electricity, gas and water supply sector fell 6 percent, and the construction industry declined 3.4 percent.

Yonhap