S. Korea's Q2 economic growth faster than expected at 0.8%

South Korea's economy grew slightly faster than expected in the second quarter, thanks to a robust recovery of exports and service sectors, central bank data showed Thursday.

The nation's economy grew 0.8 percent in the April-June period from three months earlier, 0.1 percentage point higher than earlier expected, according to preliminary data from the Bank of Korea (BOK).

The country's annualized growth in the April-June period was also revised up to 6 percent, up 0.1 percentage point.

South Korea's exports rose 35 percent on-year to $53.2 billion last month, extending their gains to 10 months.

Last week, the BOK delivered its first pandemic-era rate hike to fight rising inflation and rein in surging household debts, ending 15 months of record low interest rates as the economy showed signs of improving.

Raising the key rate, the BOK kept this year's growth outlook at 4 percent, while lifting its 2021 inflation outlook to 2.1 percent from 1.8 percent projected in May.

To help prop up the pandemic-hit economy, the government unveiled a record 604.4 trillion-won ($521 billion) budget plan for 2022. (Yonhap)