According to recent GDP data, South Korea’s economy grew by 4.4% in the last quarter, which officially became the most productive in over two years. Economists attribute the sudden increase in growth (from 3.3% to 4.4%) to soaring demand. While South Korea’s economy has traditionally been driven by exports, figures from the latest quarter indicate domestic consumption is also making an impact, as hitherto frugal consumers dip into savings. Analysts are already speculating the Central Bank of Korea will further tighten monetary policy by raising interest rates next month, which should lend additional support to the Korean Won on top of the positive GDP data. The Financial Times reports:

“The Economy is staging a steady recovery after hitting bottom in the first quarter. The upward trend is likely to continue towards the end of this year, which raises the prospect of another rate hike,” said [a Korean economist].

Read More: Demand Drives S Korean Growth