South Korea’s economy grew by an estimated 0.6% in the first quarter of 2023, maintaining the pace of expansion from the previous quarter. This growth was primarily driven by strong exports, which offset a slowdown in household consumption. The trade-dependent economy benefited from a resurgence in semiconductor exports, a positive indicator for global trade. On a year-on-year basis, GDP is projected to have expanded by 2.4%, the fastest growth rate since Q3 2022. However, potential economic headwinds include uneven growth in China and the impact of interest rate hikes on consumer spending.