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South Korea's gross domestic product increased 0.7 percent in the April-June period, after a 1.7 percent gain in the first quarter to be on track for a 4 percent expansion this year due to strong recovery of domestic demand and robust exports.
Private consumption rose 3.5 percent on-quarter in the second quarter and government expenditures gained 3.6 percent in the April-June period, the BOK said.
A strong recovery in exports is expected to help South Korea's economy grow at a faster-than-expected pace, but a raging fourth wave of COVID-19 infections is likely to weigh on the economy.
Notwithstanding constraints due to COVID-19 situation, some improvement in the pace of employment, together with continued strength in trade, is expected to have lifted demand, acording to Moody's Analytics.
Last year, South Korea's economy contracted 1.3 percent and 3.2 percent in the first and second quarters before expanding 2.1 percent and 1.2 percent in the third and fourth quarters.
