25 Jul 2009

South Korea economy grows by 2.3%

2:00 pm on 25 July 2009

South Korea's economy expanded in the second quarter by its fastest rate in five-and-a-half years.

Gross domestic product rose 2.3% from the previous three months. It fell 2.5% from the same quarter a year earlier.

The central bank said increased government spending, help for car buyers and record low interest rates helped boost the economy.

South Korea's economy is the third largest in Asia and 13th in the world.

Growth in the April - June period compares with 0.1% growth from January - March and a drop of 5.1% in the October - December period.

Exports rose 14.7% in the second quarter compared with the previous three months, helped by a weak won.