South Korea avoids recession as GDP grows 0.3% in Q1

Export-reliant economy faces sluggish chip demand in face of global slowdown

South Korea's main port is at Busan, pictured here. Exports are the lifeblood of the South Korean economy. © AP

STEVEN BOROWIEC, Nikkei staff writer

April 25, 2023 08:01 JST

Updated on April 25, 2023 11:16 JST

SEOUL -- South Korea's economy returned to growth in the first three months of this year, avoiding its first technical recession since 2020.

Gross domestic product expanded 0.3% in the January-March period from the previous quarter, following a 0.4% contraction in the final quarter of last year. The average forecast of 16 economists polled by Reuters was for 0.2% growth quarter-on-quarter.