S.Korea's economy grows at fastest pace for year

South Korea's economy grew at the fastest pace for a year on a quarterly basis in January-March thanks partly to strong industrial output, according to the central bank.

A rise in demand and strong government spending also helped offset softness in the construction and agricultural sectors.

Gross domestic product rose 0.9 percent in the first quarter compared with October-December, the highest quarter-on-quarter rise since the 1.3 percent expansion in January-March 2011.

Household consumption, government spending and capital investment all recorded growth, after posting quarterly losses in October-December.

Year-on-year GDP expanded 2.8 percent, the slowest on-year rate for two and a half years, and policymakers in the export-dominated economy are braced for a possible continued slowdown in European demand.

Last week the central bank cut its growth forecast for 2012 to 3.5 percent from 3.7 percent, citing a potential global slowdown including waning shipments to debt-hit Europe.

The finance ministry has said it would heavily front-load this year's budget spending in the first half of the year.

HSBC Global Research said Thursday's figure reflects stabilising business conditions and a strong government stimulus package but it said household consumption must rise for growth to be sustained, especially as public spending eases in the second half.

"For now, growth is stabilising and the strong sequential uptick adds further support to our view that the worst may be over in Korea," it said in a commentary.

"External risks remain high, but assuming no severe shocks in global economic conditions, Korea remains on track for a gradual recovery in 2012."

-- Dow Jones Newswires contributed to this report --

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Lupita Nyong'o's $150,000 Oscars dress stolen from hotel
    Lupita Nyong'o's $150,000 Oscars dress stolen from hotel

    The $150,000 pearl-studded, custom-made Calvin Klein dress worn by Oscar-winning actress Lupita Nyong'o at this year's Academy Awards has been stolen, police said on Thursday. The gown, embellished with 6,000 natural white pearls, was stolen from Nyong'o's room at the London Hotel in West Hollywood, during the day on Wednesday, a spokesman for the Los Angeles County Sheriff's Department in West Hollywood said. "Ms Nyong'o was not in the room at the time of the theft," Deputy John Mitchell …

  • US-led strikes on IS after group seizes 220 Christians
    US-led strikes on IS after group seizes 220 Christians

    The US-led coalition has carried out air strikes against the Islamic State group in northeastern Syria, where the jihadists have launched a new offensive and kidnapped 220 Assyrian Christians. The raids on Thursday struck areas around the town of Tal Tamr in Hasakeh province, the Syrian Observatory for Human Rights said, without giving information on possible casualties. The town remains under the control of Kurdish forces, but at least 10 surrounding villages have been seized by IS, along …

  • Militants abduct more Christians, smash ancient artifacts
    Militants abduct more Christians, smash ancient artifacts

    BEIRUT (AP) — Islamic State militants seized more Christians from their homes in northeastern Syria in the past three days, bringing the total number abducted by the extremist group to over 220, activists said Thursday. …

  • 3 Pinays on Forbes power women list
    3 Pinays on Forbes power women list

    Three Filipina executives, who are all daughters of known business tycoons in the country, made it to Forbes’ list of the 50 most powerful businesswomen in Asia. Teresita Sy-Coson, vice chairman of SM Investments and chairman of BDO Universal Bank, was included in the list for the fourth year in a row since its inception. “Under her (Sy-Coson) lead SMIC became the largest listed company on the Philippine Stock Exchange by market cap. Also in the 2015 list is 70-year-old Helen Yuchengco-Dee, …

  • 13 of 15 SAF survivors to leave PNP hospital
    13 of 15 SAF survivors to leave PNP hospital

    Thirteen of the 15 Special Action Force (SAF) policemen who survived the bloody firefight with Muslim rebels in Mamasapano last month are ready to go home after a month of medical treatment, a police official said yesterday. Philippine National Police (PNP) spokesman Chief Superintendent Generoso Cerbo Jr. said the two remaining survivors will have to stay in hospital for further treatment, one of whom has shrapnel embedded near his spine. One of the two SAF commando survivors is still …

  • US sends spy plane to patrol disputed sea
    US sends spy plane to patrol disputed sea

    The United States has deployed its newest and most advanced surveillance aircraft for patrols over the West Philippine Sea and South China Sea. The P-8A Poseidon aircraft completed more than 180 flight hours from Feb. 1 to 21 from Clark Air Base, according to the US Navy’s 7th Fleet. …

  • Review: SKK Mobile V2, a P3,999 watered-down LG G2
    Review: SKK Mobile V2, a P3,999 watered-down LG G2

    How well does this P3,999 offering from an underdog in the local mobile industry stack up against the competition? Let's find out. …

  • No coercion, force in sea row – France
    No coercion, force in sea row – France

    France renewed its call for a peaceful resolution of the West Philippine Sea dispute during a meeting between its leader President Francois Hollande and President Aquino at Malacañang. “We reiterated the importance of maintaining peace and stability in Southeast Asia and promoting maritime security, freedom of navigation and the peaceful settlement of disputes in accordance with international law, including UNCLOS (United Nations Convention on the Law of the Sea),” Aquino said in a statement …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options