Korea economy grows 1.7% in Q1 on export strength

Apr 23, 2026, 10:03 am

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Export vehicles being loaded for shipment at Pyeongtaek Port in Gyeonggi Province. / Yonhap News Agency

South Korea’s economy expanded sharply in the first quarter despite headwinds from Middle East risks, driven by strong exports and a recovery in domestic demand.

According to the Bank of Korea on April 23, real gross domestic product (GDP) grew 1.7% quarter-on-quarter in the first quarter, more than double its February forecast of 0.9%. On a yearly basis, the economy grew 3.6%.

The figure marks the fastest quarterly growth since the third quarter of 2020, when GDP rose 2.2%.

Private consumption increased 0.5%, led by goods such as clothing, while government spending edged up 0.1%, mainly due to expenditures on goods. Construction investment rose 2.8%, supported by both building and civil engineering projects, and facility investment surged 4.8% on gains in machinery and transport equipment.

Exports jumped 5.1%, driven by information technology products such as semiconductors, while imports rose 3.0%, led by machinery, equipment and automobiles.

By sector, agriculture, forestry and fisheries grew 4.1%, manufacturing rose 3.9%—led by computers, electronics and optical products—and utilities increased 4.5%. Construction expanded 3.9%, while the services sector posted a modest 0.4% increase, supported by finance, insurance and cultural services.

Real gross domestic income (GDI) surged 7.5% from the previous quarter, significantly outpacing GDP growth. It marked the highest level since the first quarter of 1988 and represented a 12.3% increase from a year earlier.

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