KATHMANDU: South Korea’s real gross domestic product rose 0.6 percent in the second quarter from the previous quarter, the central bank data showed.

Economic growth for the second quarter remained at the same level as the initial estimate released on July 23. After the economy expanded by 1.8 percent in the first quarter, growth has stabilized at a healthy level in the second quarter. Real GDP fell by 0.1 percent in the last quarter of last year.

Exports, a key pillar of South Korea’s economy, rose 1.3 percent from the previous quarter from April-June. Exports increased on the back of strong demand for semiconductors, machinery and equipment. Imports also rose 0.7 percent during the same period, with purchases of motor vehicles and industrial equipment increasing.

Private consumption increased by 0.4 percent during this period. The increase in the consumption of goods and services has helped increase private spending.

Government spending on health insurance has also increased by 0.1 percent. Investment in the intellectual property sector has increased by 3.4 percent due to the increase in research and development and software development.

Investment in industrial infrastructure and equipment increased by 0.2 percent as investment in machinery, especially equipment used in semiconductor production, expanded. However, investment in construction decreased by 0.1 percent due to a slowdown in construction and infrastructure projects. Nominal GDP increased by 9.2 percent in the second quarter compared to the previous quarter.

On an annual basis, the nominal GDP increased by 26.4 percent in the second quarter. This is the highest growth rate since the third quarter of 1979, i.e., 47 years. Nominal gross national income, which measures the total income earned by individuals and businesses both domestically and abroad, also increased by 8.8 percent compared to the previous three months from April to June.

The Gross Domestic Product Price Index (GDPP), which measures changes in the prices of all goods and services produced in the country, increased by 21.9 percent year-on-year in the second quarter.