South Korea beats virus blues as economy bounces back

Growth in Asia’s fourth-largest economy was driven by exports of chip and electronics and a rise in investments.

South Korea’s economic growth beat expectations in the first quarter, extending the country’s export-led recovery as global demand surged and the government maintained support for ailing small businesses. Gross domestic product (GDP) grew a seasonally adjusted 1.6 percent in the March quarter from three months earlier, the Bank of Korea (BOK) said on Tuesday, faster than the median estimate of a 1 percent growth rate in a Reuters poll and following a 1.2 percent expansion in the December quarter. Asia’s fourth-largest economy has continued to gain momentum after shrinking 1 percent last year, its worst contraction since 1998, driven by heavy industries such as chip and electronic manufacturing, mostly for exports.