South Korea's economic growth accelerated in the first quarter from three months earlier but remained below the 1 percent level in a sign of a tepid recovery, central bank data showed Thursday.

The country's gross domestic product grew 0.8 percent on increased construction investment and improved spending in the January-March period, up from a 0.3 percent on-quarter gain three months earlier, according to the preliminary data by the Bank of Korea.

From a year earlier, the economy expanded 2.4 percent in the first quarter, growing at the slowest pace since a 2.1 percent gain two years ago.

Asia's fourth-biggest economy has been facing economic headwinds as the recovery remains weak despite policy efforts, including rate cuts. On-quarter growth, which reached 1.1 percent in the first quarter of last year, slowed to 0.5 percent in the second quarter and fell to 0.3 percent in the fourth quarter after slightly picking up to 0.8 percent in the third quarter.

Consumer spending increased 0.6 percent from three months earlier, slightly quickening from a 0.5 percent rise in the fourth quarter. Government spending growth, which sharply slowed in the previous quarter, stayed on par at 0.2 percent.

"While consumer spending increased from the previous quarter, it is not at an absolutely high level. It is at a stage of recovery, but it is difficult to say it has been revitalized," said Jeon Seung-cheol, director general of the BOK's Economic Statistics Dept.

Growth in construction investment, which contracted for the first time in a year in the October-December period, jumped 7.5 percent on an increase in residential building projects, the data showed. The contribution rate of such spending on growth gained 1 percentage point in the first quarter, turning around from a 1.2 percentage point slump three months earlier.

Jeon explained that a recovery in the property market and the financial market, stemming from increased property and stock market transactions, helped lift the first-quarter growth.

The data comes less than a month after the BOK released its revised economic forecast for the year. Citing the weaker-than-expected recovery, the central bank cut its growth outlook to 3.1 percent from 3.4 percent, projecting growth in the first half to reach 2.7 percent.

"So far, overall growth seems to be on the growth course projected by the central bank," said Jeon, without elaborating on details for the remaining three quarters.

Speaking to the parliament on Tuesday, Finance Minister Choi Kyung-hwan said the government may consider additional stimulus measures to prop up the economy after reviewing economic circumstances in the first half.

The government has introduced a set of measures to boost sluggish growth, including easing lending rules for homebuyers. The central bank has chimed in by lowering the base rate three times since August to a record low of 1.75 percent.

Following the growth data, some analysts said the central bank may opt for an additional rate cut to give a much-needed boost to the economy as spending and investment remain lackluster.

"Construction spending was favorable, but government spending was weak. In order to also revitalize capital investment, there is a high possibility (the government) may add supplementary budgets along with a rate cut," NH Investment & Securities said in a report. (Yonhap)