The domestic economy in the first quarter tentatively grew 1.7% from the previous quarter. Shown is a night view of the Yeouido financial district in Seoul's Yeongdeungpo-gu District on Aug. 17, 2025, with the balloon Seoul Moon in the air. (Seoul Metropolitan Government)

By Kang Gahui

Economic growth in the first quarter was exceptionally brisk thanks to strong exports like those of semiconductors and recovery in investment despite the conflict in the Middle East.

The Bank of Korea on April 23 said gross domestic product (GDP) in the first quarter tentatively grew 1.7% from the previous quarter.

Rebounding from a contraction of 0.2% in the fourth quarter of last year, the figure also was also the highest since 2.2% in the third quarter of 2020.

By sector, private consumption grew 0.5% thanks to higher spending on goods like clothing, while that by the government inched up 0.1% through increased expenditures on goods.

Investment in construction rose 2.8% as both building construction and civil engineering increased. Facility investment jumped 4.8% as that in machinery and transportation equipment increased.

Exports expanded 5.1% drive by those of information and communications technology such as semiconductors. Imports grew 3% mainly due to increases in machinery and equipment and cars.

Gross domestic income, which indicates real purchasing power by the public, far outpaced GDP growth by rising 7.5%.

kgh89@korea.kr