South Korea's economy growth rate in the second quarter of 2005 was 3.3 percent, higher than the first quarter's 2.7 percent, according to a preliminary report issued by Bank of Korea (BOK) Friday.

The South Korean central bank said the 3.3 percent growth of the gross domestic product (GDP) was with its forecast made in July.

By production category, sustaining the output growth of the previous quarter, manufacturing industry increased by 5.2 percent led by semi-conductors and motor vehicles, said the report.

Construction shifted to positive growth from first quarter's -3. 0 percent to 1.7 percent during April-June period of time owing to the increased construction of roads, harbors and airports.

In terms of demand, private consumption increased by 2.8 percent, which was attributable to household spending on durables, semi-durables and services.

While the growth rate of facilities investment slowed to 2.9 percent, construction investment shifted to positive growth (1.7 percent).

Exports of goods rose by 6.5 percent, driven by a rise in exports of motor vehicle, semi-conductors and communication equipment.

In an effort to promote economic growth, the South Korean central bank has kept its key interest rate at a record low of 3. 25 percent since November last year.

The central bank expects economic growth to accelerate to 4.5 percent in the second half of the year to achieve a full-year growth target of 3.8 percent.

Source: Xinhua