The economy South Korea records strongest growth in over five years
Fueled by the AI boom, South Korea's economic output rose by 1.7 percent in the first quarter. Gross domestic product (GDP) recorded its strongest growth in five and a half years, according to the latest figures from the Korean central bank in Seoul.
23.04.2026, 03:09
SDA
Growth was almost twice as high as the central bank's original forecast of 0.9 percent. The economy benefited in particular from the strong global demand for artificial intelligence (AI). South Korea's exports increased by 5.1% in the period from January to March. Asia's fourth-largest economy is one of the world's most important producers of computer chips.
As recently as February, the central bank assumed that South Korea's GDP could increase by a total of two percent in 2026. However, the conflict situation in the Middle East and the resulting energy crisis have significantly clouded the economic outlook for the coming months. Like most East Asian economies, South Korea is heavily dependent on oil supplies via the Strait of Hormuz, which is currently largely closed.
The central bank's quarterly figures are a preliminary estimate, but are generally only adjusted slightly.
