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S.Korea Q1 GDP beats expectations with 0.9% gain

Workers work on an engine assembly line for a Hyundai trucks and bus at the JeonJu plant on October 17, 2007 in JeonJu, South Korea.
Chung Sung-Jun | Getty Images
Workers work on an engine assembly line for a Hyundai trucks and bus at the JeonJu plant on October 17, 2007 in JeonJu, South Korea.

South Korea's gross domestic product grew 0.9 percent in the first quarter of 2017 from the previous three months, the central bank estimated on Thursday, accelerating on strong exports and capital investment.

It was the fastest quarterly growth since the second quarter of 2016 when the economy also logged 0.9 percent growth.

The growth pace in the January-March quarter followed a 0.5 percent expansion in the final quarter of 2016, and outperforms a median 0.7 percent increase forecast in a Reuters poll.

From a year earlier, the economy expanded 2.7 percent in the January-March period, data from the Bank of Korea showed. That compared with a median 2.6 percent forecast from economists in the poll and 2.4 percent growth in the October-December quarter.

Capital investment jumped 4.3 percent on-quarter in the first three months after expanding 5.9 percent in the previous three months, while exports rose 1.9 percent after declining 0.1
percent a quarter earlier, the estimates showed.

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