S. Korean economy grows 2.6 pct in Q2

SEOUL, Sept. 3 (Yonhap) -- The South Korean economy grew at the fastest clip in almost seven years in the second quarter, bolstered by upbeat exports and growing manufacturing activities, the central bank said Thursday.

The country's gross domestic product (GDP), the broadest measure of economic
performance, expanded 2.6 percent in the April-June period from three months
earlier, the Bank of Korea (BOK) said, revising up from a 2.3 percent previous
estimate.
The second-quarter growth marks the steepest expansion since a 3.8 percent gain
registered for the first three months in 2002, the central bank data showed. It
is also a stark comparison with a 0.1 percent increase in the first quarter this
year.
Compared with a year earlier, the economy shrank 2.2 percent, an improvement from
an advance estimate of a 2.5 percent contraction.
"The second quarter growth came as tech and auto firms boosted production while
boosted outbound shipments by IT companies," the central bank said in a
statement.
The government's massive fiscal spending and resilient private consumption were
also responsible, according to the BOK.
The government and the BOK have been scrambling to bolster the slumping economy
by implementing large scale fiscal spending and aggressively cutting the key
interest rate. In April, the parliament approved a 28.4 trillion won (US$22.7
billion) extra budget aimed at generating jobs and boosting domestic demand.
pbr@yna.co.kr
(END)