SEOUL, July 23 (Reuters) – South Korea’s economy grew faster than market expectations in the second quarter, driven by a semiconductor export boom that offset a decline in construction investment, advanced estimates from the Bank of Korea showed on Thursday.
Gross domestic product expanded 0.6% in the April-June period from a quarter earlier on a seasonally adjusted basis, faster than a median estimate of 0.4% from a Reuters poll.
While this marks a sharp deceleration from the blistering 1.8% growth logged in the first quarter, the performance proved chip-led growth can keep the economic engine running as policymakers embarked on a tightening cycle with a 25-basis-point hike in July.
On a year-on-year basis, GDP expanded 3.7% from a year earlier, also beating a median estimate of 3.5%.
Growth was driven by a 1.4% gain in exports from a quarter earlier, led by shipments of “semiconductors, machineries and equipment,” the central bank said.
Private consumption expanded 0.4%, while construction investment declined 0.2% from the first quarter.
(Reporting by Cynthia Kim; Editing by Jacqueline Wong)
