South Korea’s gross domestic product was up a seasonally adjusted 1.3 percent on quarter in the first three months of 2024, the Bank of Korea said on Thursday.

That beat forecasts for a gain of 0.6 percent, which would have been unchanged from the previous quarter.

Real gross domestic income (GDI) increased by 2.5 percent compared to the previous quarter.

On the expenditure side, private consumption rose by 0.8 percent, as expenditures on goods (e.g., clothing) and services (e.g., restaurants and accommodation) increased.

Government consumption grew by 0.7 percent, as expenditures on goods increased. Construction investment expanded by 2.7 percent, as building construction and civil engineering both increased.

Facilities investment fell by 0.8 percent, driven by decreased transportation equipment.

Exports expanded by 0.9 percent, as exports of IT items, such as cellular phones, increased. Imports contracted by 0.7 percent, owing to decreased imports of electronic equipment.

On the production side, agriculture, forestry & fishing fell by 3.1 percent, led by a decrease in crop yields.

Manufacturing was up by 1.2 percent, mainly due to increases in chemical products and transportation equipment.

Electricity, gas and water supply increased by 1.8 percent, with increased water supply, sewerage, waste management and remediation activities.

Construction expanded by 4.8 percent, owing to increases in both building construction and civil engineering.

Services grew by 0.7 percent, led by an increase in wholesale and retail trade, accommodation & food services.

On a yearly basis, GDP was up 3.4 percent – again topping expectations for an increase of 2.4 percent and accelerating from 2.2 percent in the three months prior.