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South Korea's economy grew 5.3 percent in the second quarter from a year earlier based on a resilient recovery in consumer spending, but its quarterly growth was the lowest in five quarters, the nation's central bank said Tuesday.

South Korea's gross domestic product (GDP) expanded 5.3 percent in the April-June period from a year earlier, while rising 0.8 percent from three months earlier, according to the Bank of Korea in its advance estimate.

The result compares with a 5.41 percent expansion predicted by analysts surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency. The quarterly growth figure of 0.8 percent is the lowest since the first quarter of last year, when the economy expanded 0.5 percent, and the on-year growth was also slower than the 6.1 percent recorded in the first quarter.

GDP, the broadest measure of an economy's performance, is the total value of goods and services produced within the economy in a given period.

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

"Construction investment, however, remained sluggish."

Construction investment fell 3.9 percent in the three-month period from a quarter earlier, compared with its previous estimate of a 0.3 percent decline made in early July. Compared with a year earlier, the investment fell 4 percent.

"Due to the nation's real estate regulations, the construction of buildings for both residential and commercial purposes remains sluggish," a central bank official said. "The construction investment is expected to remain sluggish in the second half due to continued regulations."

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.

The GDP figure comes as concerns have risen over the South Korean economy's second-half performance. Many analysts have pointed out that Asia's fourth-largest economy is expected to post a slower growth in the second half of 2006, and rising oil prices and the won's rise to the U.S. dollar add to risks.

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

For all of 2006, the Korean economy is expected to grow more than 5 percent, according to the nation's Finance Ministry, helped by a rebound in consumer spending and brisk exports.

"Second-quarter economic growth fell short of our expectation... but private spending, corporate investment and exports are still sound," said Cho Won-dong, director general of the ministry's economic policy bureau.

The economy will be able to match the targeted growth rate of 5 percent this year, as overall economic conditions are still good, he said.

Seoul, July 25 (Yonhap News)