22.04.202623:09:12UTC+00South Korea Q1 GDP Growth Strongest Since 2021

South Korea’s economy grew 1.7% quarter-on-quarter in the first quarter of 2026, rebounding from a 0.2% contraction in the previous quarter and beating market expectations of 1.0% growth, preliminary data showed. This was the strongest quarterly GDP expansion since the first quarter of 2021, underpinned by robust exports and resilient domestic demand.

Exports rose 5.1%, led by IT products such as semiconductors, while imports increased at a more moderate 3.0% pace. Private consumption advanced 0.5%, supported by stronger spending on goods, and government consumption inched up 0.1%, also reflecting higher goods expenditure.

Construction investment jumped 4.8%, as both building construction and civil engineering activity expanded. Facilities investment likewise grew 4.8%, driven by increased spending on machinery and transportation equipment.

On a year-on-year basis, the economy expanded 3.6% in the first quarter, up from 1.6% in the fourth quarter of 2025. This marked the fastest annual growth since the fourth quarter of 2021 and exceeded market forecasts of 2.7%.