South Korea's economic growth sharply accelerated in the first quarter of 2010 amid a rebound in manufacturing, exports and spending, the central bank said Tuesday.
Gross domestic product expanded 1.8 percent in the three months ended March 31 from the fourth quarter last year when it grew 0.2 percent, the Bank of Korea announced.
South Korea, Asia's fourth-largest economy, has recovered strongly from the global downturn boosted by record-low interest rates, government stimulus spending and robust exports as overseas markets recover.
The central bank said earlier this month it expects the economy to grow in 2010 at its best pace in four years. Moody's Investors Service, meanwhile, rewarded South Korea with a higher credit rating for emerging from the global crisis with its finances intact.
Growth figures for the first quarter are likely to intensify speculation regarding the timing of any move by the Bank of Korea to raise its key interest rate from the current record low 2 percent.
The GDP results are preliminary and may be revised.
Tuesday's figure marks the fifth straight quarter that South Korea's economy has grown after contracting over the final six months of 2008.
Despite growing in every quarter in 2009, the economy managed to expand a meager 0.2 percent for the year, the worst performance since it contracted 5.7 percent in 1998 during the Asian economic crisis.
Prospects this year, however, look much brighter. The central bank on April 12 raised its 2010 economic growth forecast from 4.6 percent to 5.2 percent on stronger exports and domestic demand. If achieved, that would be the best performance since a similar expansion in 2006.
Moody's on April 14 lifted South Korea's government bond ratings to A1 with a stable outlook from A2 - the first increase since July 2007. A1 is the fifth-highest level and six rungs above "junk" status.
Manufacturing grew 3.6 percent in the first quarter after contracting 1.7 percent in the fourth. Exports also rebounded to expand 3.4 percent after shrinking 1.5 percent.
Government spending jumped 5.7 percent after a contraction of 2.4 percent. Private spending, meanwhile, improved to grow 0.6 percent from the fourth quarter's 0.4 percent expansion.
South Korea's economy also grew in the first quarter compared with the same period the year before, expanding 7.8 percent. That was the best performance since an expansion of 8.1 percent in the final quarter of 2002.
thejakartapost
Gross domestic product expanded 1.8 percent in the three months ended March 31 from the fourth quarter last year when it grew 0.2 percent, the Bank of Korea announced.
South Korea, Asia's fourth-largest economy, has recovered strongly from the global downturn boosted by record-low interest rates, government stimulus spending and robust exports as overseas markets recover.
The central bank said earlier this month it expects the economy to grow in 2010 at its best pace in four years. Moody's Investors Service, meanwhile, rewarded South Korea with a higher credit rating for emerging from the global crisis with its finances intact.
Growth figures for the first quarter are likely to intensify speculation regarding the timing of any move by the Bank of Korea to raise its key interest rate from the current record low 2 percent.
The GDP results are preliminary and may be revised.
Tuesday's figure marks the fifth straight quarter that South Korea's economy has grown after contracting over the final six months of 2008.
Despite growing in every quarter in 2009, the economy managed to expand a meager 0.2 percent for the year, the worst performance since it contracted 5.7 percent in 1998 during the Asian economic crisis.
Prospects this year, however, look much brighter. The central bank on April 12 raised its 2010 economic growth forecast from 4.6 percent to 5.2 percent on stronger exports and domestic demand. If achieved, that would be the best performance since a similar expansion in 2006.
Moody's on April 14 lifted South Korea's government bond ratings to A1 with a stable outlook from A2 - the first increase since July 2007. A1 is the fifth-highest level and six rungs above "junk" status.
Manufacturing grew 3.6 percent in the first quarter after contracting 1.7 percent in the fourth. Exports also rebounded to expand 3.4 percent after shrinking 1.5 percent.
Government spending jumped 5.7 percent after a contraction of 2.4 percent. Private spending, meanwhile, improved to grow 0.6 percent from the fourth quarter's 0.4 percent expansion.
South Korea's economy also grew in the first quarter compared with the same period the year before, expanding 7.8 percent. That was the best performance since an expansion of 8.1 percent in the final quarter of 2002.
thejakartapost
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