S. Korean Economy Expanded by 1.1 pc in First Quarter

South Korea’s economy had rallied in the previous quarter as health exports were buoyed, government budget increased and growth in private consumption continued to be weak. On Thursday, the country’s GDP for the first quarter grew by 1.1 percent and rebound after a reduction of 0.2 percent in the fourth quarter, according to the Bank of Korea. The 1.1 percent boost is based on seasonally adjusted terms and overcomes the 1.0 percent median forecast from the Reuters poll of 10 economists.

On a yearly basis, Gross Domestic Product escalated to 2.8 percent in Jan-Mar period the same with 2.8 percent growth in Q4. Growing export volumes, including memory chips and other software products, rose to 4.4 percent. While private consumption gained 0.6 percent which showed its weakest growth within a year.

Government expenditure boosted by 2.5 percent which is the strongest gain in the quarter after six years led by higher health care spending. President Moon Jae-in was able to improve medical benefits for senior citizens, for diagnosing dementia and fertility treatments.

Moreover, the central bank anticipates that South Korea will expand by 3 percent this 2018 but the outlook was based on international demand for memory chips and manufactured products from ROK amid concerns on trade war between China and the United States along with its possible argument.