Real GDP in the first quarter grew 1.6% from the fourth quarter of last year. Shown here are washing machines at an electronic appliance store in Seoul. (Yonhap News)

By Jung Joo-ri and Lee Jihae

Real GDP in the first quarter rose 1.6% from the fourth quarter last year.

A Bank of Korea report on April 27 said the scale of GDP in the first quarter reached KRW 470.84 trillion.

Due to the economic shock from COVID-19, economic growth last year was minus 1.3% in the first quarter, minus 3.2% in the second, 2.1% in the third and 1.2% in the fourth. The scale of GDP in this year's first quarter surpassed that of 2019's fourth (KRW 468.81 trillion), or the quarter before the pandemic broke out.

Exports grew 1.9% in the first quarter from the fourth thanks mainly to cars and cellphones. Imports rose 2.4% powered mostly by machinery, equipment and primary metal products.

Facility investment saw a huge rebound in going from shrinking 2% to rising 6.6% over the same period thanks to growth in machinery and transportation equipment.

Private consumption rose 1.1% thanks to increased spending on durable goods such as motor vehicles and home appliances and non-durable goods such as food and beverages. Consumption had seen growth of 0% in the third quarter last year and minus 1.5% in the fourth.

Construction investment continued to rise in the first quarter at 0.4%, though down from growth of 6.5% in the fourth last year, thanks to an increase in building construction.

In economic activity, manufacturing rose 2.8% thanks mainly to growth in computers and electronic and optical products, machinery and equipment, and transportation equipment. The service sector inched up 0.8% and construction grew 0.4%. 

Park Yang-su, director-general of the Economic Statistics Department at the Bank of Korea, said, "Arithmetically, if the growth rate from the second to the fourth quarters remains at 0.4%-0.5%, the yearly growth rate will be 3.6% and 3.8% if the range is 0.6%-0.7%."

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki on April 27 posted on Facebook, "This report card greatly surpassed the outlooks of leading institutes and markets at both home and abroad."

"Our economy eclipsed the government's initial outlook of 3.2% for 2021 and is expected to achieve growth in the mid- to upper 3% range."

etoilejr@korea.kr