South Korea’s gross domestic product (GDP) in the first three months of the year grew 1.1 percent against the previous quarter, faster than the preliminary rate of 0.9 percent released in April to raise hopes that the annualized full-year growth rate could near 3 percent for 2017, said the Bank of Korea Friday.

In the revised data, growth of Asia’s fourth largest economy accelerated by leaps from 0.5 percent in the previous quarter and by the fastest pace since 1.3 percent in the third quarter of 2015.

Bank of Korea Governor Lee Ju-yeol last month said the central bank will up its growth outlook for this year from 2.6 percent.

The first-quarter data came out better than expected because of stronger figures in not only exports but also in investments in the construction sector due to continued boom in the property market and knowledge-based produces.

The revised GDP data fueled the Korean stock market in the longest bull run in a decade. As of 11:31 a.m. Friday, the main index gained 0.85 percent to 2,364.53 from the previous session.

Exports grew 2.1 percent the first quarter, revised up from 1.9 percent gain in April, thanks to strong overseas demand in semiconductors, machinery, and other parts.

Construction investment jumped 6.8 percent in the first quarter after contracting 1.2 percent in the fourth quarter. The final figure was up by 1.5 percentage points from the April number.

Investment in software and other knowledge-based sector gained 0.3 percent, higher by 0.5 percentage point from the preliminary number.

Chipmaking and other facility investment jumped 4.4 percent against the previous quarter.

Domestic spending also made improvements with private spending gaining 0.4 percent and government spending 0.5 percent in the first quarter.

By sector, agriculture and fisheries output grew 5.9 percent, construction 5.3 percent, and manufacturing 2.1 percent.

The factory output rose by the fastest pace since the fourth quarter of 2010.

Services output growth stopped at 0.2 percent, reflecting slower recovery in the consumer demand.

Gross national income in the first quarter after seasonal adjustment rose 2.7 percent from the previous quarter to 403.9 trillion won ($360 billion) in the first quarter. The share of gross saving against GDP rose to 36.9 percent from 35.8 percent in the fourth quarter as disposable income grew 2.6 percent, faster than increase of 0.9 percent in private expenditures. Gross corporate investment rate was 30.5 percent, up from 29.9 percent in the fourth quarter and highest since the second quarter of 2012.

By Boo Jang-won

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