SEOUL, April 26 (Xinhua) -- South Korea's gross domestic product (GDP) growth rebounded in the first quarter due to solid export and facility investment, central bank data showed Thursday.
The seasonally-adjusted real GDP reached 395.93 trillion won (366.9 billion U.S. dollars) in the January-March quarter, up 1.1 percent from the previous quarter, according to the Bank of Korea (BOK).
It was a rebound from a 0.2 percent reduction in the fourth quarter of last year, topping expectations of a 1 percent growth.
From a year earlier, the real GDP increased 2.8 percent in the March quarter.
If the current growth trend continues, South Korea's economic growth is expected to meet the BOK's growth outlook of 3 percent in 2018, though uncertainties remain during the rest of this year, a senior official with the BOK said at a press briefing.
The robust growth was mainly attributable to exports, which advanced 4.4 percent in the first quarter from the prior quarter on demand for semiconductors, chemicals and machinery equipment.
Outbound shipments for semiconductors and computers surged 44.2 percent and 62.5 percent, respectively.
The export declined 5.3 percent in the fourth quarter of last year as companies brought forward outbound shipment ahead of the long Chuseok holiday, the South Korean version of Thanksgiving Day, in October.
Imports climbed 5.5 percent in the first quarter on demand for natural gas and general machinery.
Helped by the robust exports, facility investment gained 5.2 percent in the first quarter, marking the highest in five quarters. Demand was strong for semiconductor equipment and machinery amid the global boom in the chip sector.
Investment in the construction industry grew 2.8 percent in the first quarter from three months earlier, after reducing 2.3 percent in the previous quarter. It was the highest since the first quarter of last year.
The construction investment growth stemmed mainly from the hosting of the 23rd Winter Olympic and Paralympic Games in February and March, which required construction of new stadium, gymnasiums and athletes' village.
Private consumption rose 0.6 percent, marking the lowest in four quarters. The government under President Moon Jae-in had submitted a supplementary budget plan to the National Assembly to create decent jobs for the younger generation, but it was currently pending as the main opposition Liberty Korea Party refused to open a session.
The Moon government has maintained an income-based growth policy to create jobs and increase income in a bid to bolster private consumption. Moon, on his campaign trail, vowed to keep raising minimum wage during his five-year presidency through 2022.
Confidence among consumers over economic situations declined for five straight months since December last year, reflecting a faltering consumer sentiment.
Employment growth in the yearly basis hovered below 200,000 for the first two months of this year, casting a cloud over the labor market and the consumer spending.
Fiscal spending advanced 2.5 percent in the first quarter, logging the fastest expansion in 24 quarters since the first quarter of 2012.
By industry, production among manufacturers gained 1.9 percent, with the figure for the construction industry rising 3.3 percent, the fastest in a year. Output in the services sector grew 0.9 percent, after rising 0.3 percent in the prior quarter.
