South Korea Reports Fastest GDP Growth Since 2020

The Ministry of Economy and Finance reported a strengthening economic recovery for South Korea, citing strong export growth and an uptick in consumer spending. According to the agency's monthly Green Book report, the country's revised real gross domestic product grew 1.8 percent in the first quarter, marking the fastest growth pace since late 2020.

Export activity reached a historic milestone in June, exceeding 100 billion U.S. dollars for the first time with a year-on-year increase of 70.9 percent. While retail sales rose slightly in May and consumer sentiment improved in June, these gains were countered by rising costs. Consumer prices surged 3.2 percent in June, representing the fastest price growth in two and a half years.

The ministry cautioned that ongoing conflicts in the Middle East continue to pressure the domestic economy. These external tensions are contributing to rising inflation and slowing job growth, potentially tempering the current recovery trajectory.