South Korea's Q1 GDP Growth Surpasses Expectations

The country's economy expanded by 1.3% in the first quarter, driven by robust exports and increased construction investment.

South Korea's economy grew by 1.3% in the first quarter of 2024, outpacing forecasts and marking the fastest growth in over two years.
Exports and construction investments were key drivers of the growth, with exports expanding for the sixth consecutive month.
Despite the strong GDP figures, there are concerns about the sustainability of the recovery, particularly in consumer spending and the labor market.
The Bank of Korea maintains a cautious stance on monetary policy, citing uncertainties around inflation and export strength.
Analysts are divided on future interest rate cuts, with some expecting a reduction by mid-year if inflation continues to ease.