View across the Hangang River in Seoul, South Korea.<\/p>\n
Universal History Archive | Universal Images Group | Getty Images<\/p>\n
South Korea avoided a technical recession as its economy expanded by 0.6% from the previous quarter, beating expectations, according to advance estimates.<\/p>\n
This was higher than the 0.5% expected by economists polled by Reuters, and a reversal from the 0.2% contraction seen in the first quarter.<\/p>\n
On a year-over-year basis, the country’s GDP rose 0.5%, up from 0% in the first quarter and higher than a 0.4% expansion expected by the Reuters poll.<\/p>\n
Total consumption, which includes private and government expenditure, increased 0.7% from the previous quarter, a stronger showing compared to the 0.1% contraction seen in the first three months of the year.<\/p>\n
Government expenditure, which rose 1.2% quarter over quarter, was mostly powered by an increase in healthcare benefits, while private expenditure, which increased by 0.5% in the same period, was driven by increased spending on motor vehicles, as well as recreation and sporting activities.<\/p>\n
Data from the Bank of Korea<\/a> showed exports of both goods and services grew strongly in the second quarter, rising 4.2% quarter over quarter as shipments of semiconductors, petroleum products, and chemical products increased.<\/p>\n South Korea is currently trying to close a trade deal with the U.S., failing that, the country’s exports to the U.S. would be hit with a 25% tariff from August 1.<\/p>\n Exports of goods and services make up about 44% of South Korea’s GDP in 2023, according to the latest figures from the World Bank<\/a>, with the U.S. as its second-largest export market.<\/p>\n