South Korean central bank said Tuesday that the country's gross domestic product (GDP) increased 5.3 percent in the second quarter from a year earlier amid a recovery in consumer spending.

"Corporate capital spending and exports grew at a fast pace and the consumer spending posted a steady growth," the bank said.

According to the bank, private spending grew 0.9 percent in the second quarter from the previous quarter, while corporate capital spending rose 2.8 percent. Goods exports expanded 6.3 percent, while imports grew 7.7 percent.

Analysts predicted the economic growth is expected to slow down in the second half of 2006, as rising oil prices and the won's rise to the U.S. dollar leave negative effects on the economy.

South Korea's central bank froze its key interest rate for July to 4.25 percent in a bid to maintain a growth pace, but hinted it may raise the rate in the coming months amid rising inflationary pressure.

On last Wednesday, South Korean Deputy Finance Minister Kim Seok-dong said the economic growth rate will stand at 5 percent this year.

South Korea is the world's 10th largest economy with its GDP amounted to 793 billion U.S. dollars in 2005.

Source: Xinhua