South Korea's economy expanded 3.7% in the second quarter from a year earlier, according to the Bank of Korea's advance estimate published Thursday.
The pace of growth weakened marginally from the 3.8% expansion recorded in the previous quarter, but beat the consensus forecast for a 3.5% growth, tracked by Investing.com.
On a quarter-over-quarter basis, the economy rose 0.6%, also decelerating from the 1.8% increase in the previous quarter. The latest print, however, was up from the 0.4% consensus forecast.
Real gross domestic income jumped 15.6% year over year, accelerating from the 13.2% growth in Q1.
The slowdown in annual GDP growth was partly due to a softer rise in exports of goods and services at 9% in Q2 versus 11.8% in Q1. Import growth likewise weakened to 6.3% from 8.5%.
On the production side, output from the agriculture, forestry and fishing sector contracted 2.4% after growing 3.5% in Q1, while manufacturing output growth decelerated to 6.5% from 7.2%
Utilities production inched down 0.5%, softening from the 5% drop the previous quarter.
On the expenditure side, private consumption rose 2.5% year over year, weaker than the 2.7% increase in Q1. On a quarter-over-quarter basis, private consumption edged up 0.4%, which the BOK attributed to increased spending on household appliances, restaurants, and accommodations.
The advance estimate was published a week after the BOK raised its benchmark interest rate for the first time in three and a half years.
Also last week, South Korea lifted its full-year GDP growth forecast for 2026 to a five-year high of 3%, citing a semiconductor boom.
