South Korea indicate boost in economy growth

The growth of the fourth largest economy in Asia - South Korea, reached 2.5% in the first quarter of 2015 compared to the same period last year, reports the BBC.

The pace of increase exceeded the forecasts of South Korean Central bank. The bankers had expected growth of 2.4%. The government report also showed that the rise in gross domestic product (GDP) reached 0.8% in January-March compared to the last quarter of 2014.

The growth has been supported by the construction and investments as well as the consumption and production sector. Analysts predicted a slight growth in the first quarter. South Korea's economy is expected to gain momentum later in the year. In the last quarter of 2014 the economy of South Korea marked the lowest growth rate in the last six years, expanding by only 0.4%.To promote economic growth, South Korean Central bank reduced the interest rate to 1.75% in March. This move surprised the markets, but analysts expressed the opinion that it is possible prolapse of the new rate to the historic low of 1.5% in the coming months.