South Korea's economy grew 2.3 per cent in the second quarter compared with the first three months of the year, supporting the view that Asia's fourth-biggest economy will be one of the first to sail clear of the financial storm.
However, officials have urged against complacency. Although the private sector is showing clear signs of robust recovery, heavy government spending is still fuelling much of the growth. Financial regulators also worry another sharp shock to the global financial system could choke South Korea's recovery and analysts complain of an asset bubble.
Second-quarter gross domestic product contracted 2.5 per cent when compared with the same period last year, improving from a 4.2 per cent decline between January and March.
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