The Republic of Korea ’s economy is estimated to have grown 7.2 percent year-on-year in the first half of 2010, much higher than the earlier estimate of 5.7 percent, thanks to brisk exports and recovering domestic demand.
The Ministry of Strategy and Finance said on July 4 that following an 8.1 percent growth in the first quarter of the year, the economy is predicted to gain 6.3 percent in the second quarter, making it 7.2 percent for the first six months.
The ministry also attributed the high growth to the fact that the economy tanked in the corresponding period of last year, the Korea Times said.
Asia's fourth-largest economy was hit hard by the global financial crisis a year ago but has been on a fast recovery track since.
The RoK posted a record trade surplus of 7.5 billion USD in June thanks to strong exports in ships, semiconductor and cars.
The current account surplus also hit a six-month high of 3.83 billion USD in May. Meanwhile, employment has been improved in the RoK, with the number of new employees in May surpassing the figure for the same period last year by 580,000 people, an eight-year record increase.
According to industry experts, the faster-than-expected recovery is putting pressure on the Bank of Korea (BOK) to raise its key rate, which has been kept on hold at an all-time low of 2 percent for 16 straight months.
BOK Governor Kim Choong-soo said last week that if the current accommodative policy stance is prolonged, it could bring about the risk of inflation and a hike in asset prices.
The RoK Ministry of Finance late June forecast that the country’s economy will expand 5.8 percent against the five-percent projection at the beginning of the year./.