Seoul:<Text>

Despite the ongoing crisis in the Middle East, the South Korean economy posted its fastest quarterly growth in 5 1/2 years in the first quarter, supported by solid exports and resilient domestic demand, central bank data showed Thursday. The country's real gross domestic product (GDP) -- a key measure of economic growth -- rose 1.7 percent in the January-March period from three months earlier, according to the preliminary data from the Bank of Korea (BOK).

According to Yonhap News Agency, this growth marked the strongest quarterly expansion since the third quarter of 2020, when the economy saw a 2.2 percent rise. The latest figure was nearly twice the BOK's forecast of 0.9 percent growth. Prior to this, Asia's fourth-largest economy contracted by 0.2 percent in the first quarter of 2025, followed by growth of 0.7 percent and 1.3 percent in the subsequent quarters. However, it faced a setback in the fourth quarter with a 0.2 percent decline due to weak facility inv estment and a downturn in the construction sector.

Overall, South Korea's economy expanded by 1 percent in 2025, reflecting a year of mixed economic performance, with significant growth in the early months offsetting challenges faced later in the year.