Korean Economy Grows by 4.6% in 1st Quarter, Sneering at Earlier Estimates

The Korean economy posted a 4.5 percent growth rate in the first quarter of this year, recovering to pre-crisis levels.
On Thursday, the Bank of Korea(BOK) attributed the much-higher-than-expected figure to revived consumer consumption and facility investment by companies. Robust exports functioned as another factor in the first quarter's performance, which was forecasted at 3.1 percent by the BOK only last month.
Accordingly, the forecast for 1999's growth rate, which was initially estimated at 3.2 percent then revised to 3.8 percent, is expected to be corrected again up to 4 percent or more.
Analysts now say that the Korean economy has almost recovered from the economic crisis that has gripped the country since November 1997.
During the first three months, the manufacturing sector played the lead role in the brisk business environment. Production surged by 10.7 percent from minus 4.7 percent in the previous quarter. The service sector also grew by 6.6 percent thanks to the dramatic 24 percent jump in the information and communication business.
Consumption in the private sector rose by 6.6 percent during the quarter, and facility investment and exports increased by 12.9 and 12.4 percent each.
Shang-bok Shim : simsb@joongang.co.kr