Services output in 8 provinces, cities rises in Q1 amid economic recovery

Combined services output rose in eight provinces and major cities in South Korea in the first quarter, led by production gains in Seoul, as the economy is on the recovery track, data showed Tuesday.

Seoul, three other cities, and four provinces posted the year-on-year increase in the January-March period, according to the data from Statistics Korea.

Among them, output in Seoul — home to about one-fifth of the country’s population of 52 million — rose at the fastest rate of 6.3 percent, yearon-year, in the first quarter, backed by robust gains in the financial, telecommunications and wholesale sectors.

Six provinces and cities saw services output declines, while production in two regions remained unchanged.

The services sector was hit hard by the COVID-19 pandemic, but deep slumps in the in-person sectors, including accommodation and retail, have eased as people’s activities increased amid warmer weather.

In the first quarter, the country’s services output grew 2.2 percent year-on-year, according to the government statistics agency.

Retail sales, a gauge of private spending, rose in 14 provinces and cities in the first quarter, amid eased social distancing regulations, the data showed.

The southeastern city of Daegu saw retail sales rise 9.5 percent, and retail sales in the central city of Daejeon increased 8.3 percent.

South Korea’s southern resort island of Jeju suffered the biggest fall in retail sales, with an 8.1 percent decline amid sluggish duty-free sales.