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.

  • Phl, Japan sign P9.6-B ODA projects
    Phl, Japan sign P9.6-B ODA projects

    The Philippines and Japan have signed agreements for six official development assistance (ODA) projects amounting to 22.289 billion yen or around P9.6 billion. …

  • Commission to launch glossary of Pinoy meteorological terms
    Commission to launch glossary of Pinoy meteorological terms

    The Komisyon sa Wikang Filipino (KWF) will release a glossary of meteorological terms in Filipino to help the Filipino people better understand weather forecasts and instill disaster awareness among them. National Artist for Literature and KWF president Virgilio Almario said yesterday the KWF produced the glossary titled Patnubay sa Weder Forkast to simplify scientific terms used in the weather bulletins of the Philippine Atmospheric Geophysical and Astronomical Services Administration …

  • Divorce bill good scapegoat for couples – CBCP
    Divorce bill good scapegoat for couples – CBCP

    Contrary to what romance novel writers would want their readers to believe, there are no perfect marriages in the real world. This was according to Catholic Bishops’ Conference of the Philippines (CBCP) president Lingayen-Dagupan Archbishop Socrates Villegas. In a statement titled “CBCP Position Against the Divorce Bill and Against the Decriminalization of Adultery and Concubinage,” Villegas said that while it is not easy to make relationships last, learning how to work out differences – and …

  • DND holds off infra dev’t in Pag-Asa
    DND holds off infra dev’t in Pag-Asa

    The defense department is holding off repairs and other planned infrastructure projects on Pag-Asa Island, one of seven islets and two reefs occupied by Filipino troops in the disputed Spratly Islands. Earlier, Foreign Affairs Secretary Albert del Rosario pointed out that the maintenance and repair of facilities in Pag-Asa Island are not covered by the Declaration of Conduct (DOC) of parties involved in the West Philippine Sea territorial disputes. “Repair and maintenance is okay but before …

  • Blackout to hit 5 Aurora towns
    Blackout to hit 5 Aurora towns

    An 11-hour power outage will hit five towns in Aurora on Tuesday, the National Grid Corp. of the Philippines (NGCP) announced yesterday. The NGCP said Baler, Dingalan, San Luis, Ma. Aurora and Dipaculao would be affected by the blackout. The NGCP said parts of Nueva Ecija and Aurora were hit by a power interruption yesterday due to the tripping of the Cabanatuan-Baler 69kV line. …

  • Rules set for climate change programs
    Rules set for climate change programs

    The Department of Budget and Management (DBM) and the Climate Change Commission (CCC) have released the revised guidelines to track and monitor climate change adaptation programs of the government. “The government of the Philippines has demonstrated leadership and strong commitment in implementing a comprehensive reform agenda to respond to climate change,” read the joint memorandum circular published in The STAR yesterday. “With the goal of using the budget process to plan, prioritize and …

  • It’s time to move on– Speaker
    It’s time to move on– Speaker

    The nation can now move on as President Aquino has satisfactorily explained his side on the Mamasapano incident for which he even begged for understanding, lawmakers led by Speaker Feliciano Belmonte Jr. said yesterday. “It’s time to move on,” Belmonte said in reaction to Aquino’s pronouncements made before new police graduates at the Philippine National Police Academy (PNPA) last Thursday. The President has spoken far too much about what he knows and about his limited involvement in the …

  • ToyotaPH continues it’s strong sales in February
    ToyotaPH continues it’s strong sales in February

    Toyota Motor Philippines (TMP) sustains its strong sales in its February performance. Toyota’s strong performance last month was due to the  high demand of the Vios, with sales of 2,012 units and of course the rest of Toyota’s line up such as the Fortuner, Innova, Wigo, Hilux, Avanza and Corolla Altis. Toyota’s luxury brand, Lexus, recorded 60 units last month. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options