South Korea GDP Growth Beats Expectations in Q2

South Korea’s economy grew 0.6% quarter-on-quarter in Q2 2025, rebounding from a 0.2% contraction in Q1 and surpassing market forecasts of 0.5%, according to advanced estimates. Private consumption rose 0.5%, supported by higher spending on goods like motor vehicles and services such as recreation and culture. Government consumption increased 1.2% on the back of expanded health care benefits. However, construction investment declined 1.5%, with both building and civil engineering activity falling, while facilities investment also dropped 1.5% amid reduced purchases of machinery and transport equipment. Exports rose 4.2%, driven by semiconductors, petroleum products, and chemicals, while imports climbed 3.8%, mainly due to stronger demand for energy items like crude oil and natural gas.