SKorea's economic growth hits 2-year high in 1Q

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SEOUL, South Korea (AP) — South Korea's economy expanded at the fastest level in two years in the first quarter as capital expenditure and exports turned higher.

Bank of Korea said Thursday South Korea's economy grew 0.9 percent in the January-March period from three months prior, accelerating from 0.3 percent growth in the fourth quarter.

Over a year earlier, Asia's fourth-largest economy expanded 1.5 percent, the same level as the previous quarter.

The bank said capital expenditure increased after declining for the previous three quarters. Exports also turned higher after the fourth quarter's drop.

Bank of Korea held its key rate steady for a sixth month in April after two rate cuts last year saying South Korea is on track to slow recovery while South Korea's government proposed $15 billion extra budget to boost economy.

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