SEOUL, April 27 (Xinhua) -- South Korea's economic growth got back into a recovery track as rising exports and investment bolstered the country's economy, central bank data showed on Thursday.
Real gross domestic product (GDP) was 383.6 trillion won (339.6 billion U.S. dollars) in the January-March quarter, up 0.9 percent from the previous quarter, according to the Bank of Korea (BOK).
The seasonally-adjusted GDP growth jumped from a 0.5 percent expansion tallied in the previous quarter, raising hopes for a full recovery of the export-driven economy.
The first-quarter growth was the highest in three quarters. From a year earlier, the real GDP advanced 2.7 percent in the March quarter, marking the highest since the second quarter of last year.
Exports, which account for about half of the economy, led the first-quarter expansion owing to robust demand for locally-made semiconductors.
Consumer sentiment recovered as political uncertainty eased following the impeachment of former President Park Geun-hye. Expectations are running high for the next government ahead of the presidential election on May 9.
The country's exports gained 1.9 percent in the first quarter compared with the previous quarter, after sliding 0.1 percent in the previous quarter. Demand was strong for chips, displays and machinery manufactured here.
The quarterly export increase logged the fastest in five quarters thanks to the recovery of the U.S. economy and higher oil prices that led to growth in oil exporting countries.
South Korea's exports kept an upward momentum for five months through March. The shipments also showed a rosy picture for the first 20 days of April, according to customs data.
Investment in the construction sector grew 5.3 percent in the March quarter, after falling 1.2 percent in the prior quarter. It was the fastest growth in four quarters.
Concerns had emerged about the construction sector as massive household debts were feared to weigh down on demand for new homes. Construction investment in the public sector offset weak demand in the private sector in the first quarter.
Household debts here increased fast in recent years as the BOK cut the benchmark interest rate from 3.25 percent in July 2012 to an all-time low of 1.25 percent in June last year.
Market rates began to go higher following the U.S. Federal Reserve's rate hikes in March and December. The Fed predicted two more hikes for the rest of this year.
South Korea's facility investment jumped 4.3 percent in the first quarter, after tumbling 5.9 percent in the previous quarter. Capital spending was solid in the semiconductor equipment and machinery sectors.
Facility investment raised the first-quarter GDP growth by 0.4 percentage points, while exports and construction investment lifted the growth by 0.8 percentage points respectively.
Private consumption, however, dragged down the GDP recovery as widespread low income and massive irregular workers have yet to be resolved.
Consumption grew 0.4 percent in the first quarter, but it was still relatively low compared with growth rates of 0.8 percent in the second quarter and 0.6 percent in the third quarter in 2016.
