The economy in the first quarter of this year grew 1.7% from the previous quarter. Shown here is a panoramic view of Seoul on Sept. 27 last year as seen from 63 Square. (Yonhap News)

By Kim Yeojin and Lee Jihae

The economy in the first quarter of this year grew 1.7% from the previous quarter.

The Bank of Korea on June 9 said it raised the GDP growth rate for the first quarter from the 1.6% estimate it made on April 27.

The economy thus grew for the third straight quarter, rising 2.1% in the third and 1.2% in the fourth last year.

If the growth rate over the rest of this year averages 0.6%, the annual figure for 2021 is expected to reach 4%.

By sector, manufacturing grew 3.8% quarter on quarter led by transportation equipment, computer and electronic goods, optical instruments and chemical products. Construction rose 0.9% due to increases of non-residential buildings and specialized projects. Services went up 0.7% led by wholesale and retail trade, hospitality, finance and insurance, and education services.

By item, higher purchases of durable goods such as motor vehicles and services such as education mainly fueled private consumption's growth of 1.2%. Government consumption expanded 1.6% thanks to higher spending on goods, and construction investment rose 1.3% as the volume of building construction increased.

Facility investment surged 6.1% led by higher investment in machinery and transportation equipment. Exports increased 2% with the growth of overseas shipments of goods such as motor vehicles and mobile phones.

Nominal gross national income (GNI) rose 2.3% and real GNI grew 2.4%.

According to the central bank's finalized national accounts for 2019 and preliminary national accounts for 2020, per capita GNI reached USD 31,881 (KRW 37.62 million) last year.

The 1.2% rise in the foreign exchange rate caused per capita GNI in USD to fall 1% last year (USD 32,204), but that in KRW rose 0.2% (KRW 37.53 million).

Per capita GNI, or the country's income at both home and abroad divided by the population, is an index measuring standard of living.

Korea's per capita GNI first broke the USD 30,000 mark in 2017 (USD 31,734). The figure has since remained in the USD 30,000 range for four straight years.

lvzhen@korea.kr