Second-quarter nominal GDP growth hits highest level in 47 years

South Korea's nominal gross domestic product grew 26.4% in the second quarter from a year earlier, marking its fastest increase in 47 years, as a recovery in the semiconductor sector supported the economy.

The Bank of Korea said on September 8 that real GDP grew 0.6% from the previous quarter and 3.7% from the same period a year earlier. The figures for April through June matched the preliminary estimates released in July.

Exports increased 1.3%, driven by semiconductors and machinery and equipment. Imports rose 0.7%, supported by higher purchases of automobiles and machinery, while private consumption grew 0.4% on stronger spending on household appliances and services.

The 26.4% annual rise in nominal GDP was the largest since the 27.7% increase recorded in the third quarter of 1979. The report linked the result to improved terms of trade, although the supplied text ends before providing further details.

Reflecting the semiconductor recovery, the Bank of Korea raised its forecast for full-year real GDP growth to 3.3% in its revised August outlook, from 2.6%. If achieved, that would be the highest annual growth rate since 2021, when the economy expanded 4.7%.