South Korea’s second quarter GDP growth beats expectations

SEOUL – Second quarter GDP growth in South Korea has increased for a third consecutive quarter, rising to 1.1% q/q, (2.3% y/y) from 0.8 q/q (1.5% y/y) in the first quarter, and beating market expectations. The better-than-expected performance was led by a pickup in private and Government consumption, most likely due to fiscal stimulus measures adopted in April, with support from May’s interest rate cut. Investment and exports also performed reasonably well, although moderating from the previous quarter.