Real income growth rate at its highest in 38 years
Real GDI posts its biggest increase in 38 years, and second-quarter GDP also beats forecasts Check the market reaction to the growth driven by semiconductor exports and a recovery in consumption
The Bank of Korea announced the secondquarter growth rate for gross domestic product (GDP) and the rise in real gross domestic income (GDI), saying that real GDI increased by the largest margin in 38 years and 3 months.
According to details released on the 23rd, real GDP in the second quarter rose 0.6% from the previous quarter, surpassing the Bank of Korea’s earlier forecast of 0.2%. Compared with the same period last year, it grew 3.7%. Strong semiconductor exports and a recovery in consumption contributed to growth, and private consumption and government consumption also increased.
In particular, real GDI rose 15.6% from a year earlier, posting the highest increase since the first quarter of 1988. This was largely due to improved terms of trade from rising semiconductor prices. The improvement in these income indicators is also increasing market attention on the path of inflation and the base interest rate.