South Korea’s economy experienced its fastest growth in over two years in the first quarter of 2024, driven by a recovery in exports and robust private spending, according to data from the Bank of Korea (BOK). The expansion marked a significant increase from the previous quarter and was the highest since the fourth quarter of 2021. On an annual basis, the economy also showed a notable improvement compared to the last quarter of 2023.

Private spending and exports both contributed positively to the growth, albeit at a slower pace for exports compared to the previous quarter. Government spending and construction investment also saw increases, with the latter reversing the decline seen in the prior quarter. The BOK expects the economy to rebound modestly in 2024, following a slowdown in growth last year.