Seoul, April 23 (QNA) - South Korea's real gross domestic product (GDP) grew 1.7% in the first quarter of 2026, marking its fastest quarterly growth in 5 and half years, supported by solid exports and resilient domestic demand.

Exports rose 5.1% compared to the previous quarter on the back of strong global demand for semiconductors, marking the fastest growth since the third quarter of 2020, according (Yonhap) News Agency.

Private consumption added 0.5%, while government spending edged up 0.1%. Facility investment increased 4.8% on a quarterly basis, and construction investment grew 2.8%.

On an on-year basis, the economy expanded 3.6% in the first quarter, up from the 1.6% growth in the previous quarter, data from the Bank of Korea (BOK) showed.

Real gross domestic income (GDI) rose 7.5% on-quarter in the first quarter, marking the highest level since the first quarter of 1988.

In its latest outlook published in February, the BOK had projected the economy to grow 2% in 2026, it has since noted a loss of economic momentum, indicating that performance is likely to undershoot its earlier forecast due to the prolonged conflict in the Middle East. (QNA)