A customer visits a shopping mall in Goyang, South Korea, July 9, 2022. South Korea's real gross domestic product (GDP), adjusted for inflation, grew 0.7 percent in the second quarter this year compared to the previous quarter, central bank data showed on Tuesday. (Xinhua/Wang Yiliang)
SEOUL, July 26 (Xinhua) -- South Korea's real gross domestic product (GDP) grew in the second quarter of this year due to brisk private consumption, central bank data showed on Tuesday.
The real GDP, adjusted for inflation, expanded 0.7 percent in the April-June quarter from three months earlier, after rising 0.6 percent in the January-March quarter, according to the Bank of Korea (BOK).
The quarter-over-quarter GDP increase continued for the eighth consecutive quarter since the third quarter of 2020. From a year earlier, the real GDP advanced 2.9 percent.
Export, which accounts for about half of the country's export-driven economy, declined in the second quarter, but consumer spending rebounded as the government lifted all measures against the COVID-19 pandemic except an indoor mask mandate.
Private consumption, another growth engine of South Korea's economy, went up 3.0 percent in the second quarter from three months earlier, after sliding 0.5 percent in the first quarter.
Domestic demand increased for the lodging and eatery and the leisure and culture services as well as clothing and footwear as the lifting of anti-virus measures encouraged people to do outside activities.
However, concerns have emerged about consumer spending in the third quarter as the spread of a new COVID-19 sub-variant rapidly raised the daily number of infections.
In the latest tally, the country reported 99,327 new COVID-19 cases for the past 24 hours.
The daily caseload was compared to 73,558 tallied a week earlier and 37,344 recorded two weeks ago.
Export fell 3.1 percent in the second quarter from the previous quarter, marking the first decline in a year since the second quarter of last year.
Downside risks to the country's export remains amid the rising worry about the global economic downturn, driven by faster-than-expected interest rate hikes in major economies to rein in runaway inflation.
Inflationary pressure mounted globally on the back of prolonged geopolitical risks in Europe and continued supply chain disruptions.
Import shrank 0.8 percent in the cited quarter on lower demand for crude oil and natural gas.
Facility investment fell 1.0 percent in the second quarter on weaker demand for transport equipment, after tumbling 3.9 percent in the first quarter.
Construction investment rebounded 0.6 percent in the second quarter after skidding 3.9 percent in the prior quarter, while fiscal spending picked up 1.1 percent.
Private consumption and fiscal spending bolstered the real GDP by 1.4 percentage points and 0.2 percentage point respectively in the second quarter, while the net export lowered it by 1.1 percentage points.
By industry, production among manufacturers slumped 1.1 percent in the second quarter on a quarterly basis, while production in the services industry gained 1.8 percent.
The figure for the agriculture, forestry and fishery sector plunged 6.4 percent, but the reading among builders rose 0.2 percent in the second quarter after dwindling 1.6 percent in the first quarter. ■
People dine at a restaurant in Seoul, South Korea, July 18, 2022. South Korea's real gross domestic product (GDP), adjusted for inflation, grew 0.7 percent in the second quarter this year compared to the previous quarter, central bank data showed on Tuesday. (Xinhua/Wang Yiliang)
Customers visit a shopping mall in Goyang, South Korea, July 9, 2022. South Korea's real gross domestic product (GDP), adjusted for inflation, grew 0.7 percent in the second quarter this year compared to the previous quarter, central bank data showed on Tuesday. (Xinhua/Wang Yiliang)