The South Korean economy expanded by zero-point-six percent in the April to June period from the previous quarter on the back of strong exports and a rebound in consumption, according to preliminary estimates by the Bank of Korea(BOK) on Thursday.

The central bank added that the nation will be able to meet or near this year’s economic growth forecast of zero-point-eight percent should the U.S. reciprocal tariff rate for South Korea be set at a level similar to that of Japan at 15 percent.

The BOK report showed that the nation’s economic growth was zero-point-one percentage point higher than the zero-point-five percent expected by economists and a reversal from the zero-point-two percent contraction seen in the first quarter this year.

According to the data, exports rose four-point-two percent on-quarter as shipments of semiconductors, petroleum products and chemical products increased.

Government expenditures rose one-point-two percent, mostly powered by an increase in health care benefits, while private expenditures increased by half a percent in the same period, driven by increased spending on automobiles and cultural activities, among other things.

But facility investment and construction investment each shed one-point-five percent.

BOK official Lee Dong-won told reporters that looking ahead toward the second half of the year, the import and export sectors will likely be hit negatively by the impact of U.S. tariffs, but private and domestic consumption are expected to improve due to factors such as a recovery in economic sentiment.

Lee also noted that domestic economic growth will likely meet the central bank’s forecast or, at worst, slightly slow if the U.S. reciprocal tariff rate for South Korea is set at 15 percent, the same level the Donald Trump administration set for Japan.

The government is currently trying to negotiate a deal with the U.S. to avoid getting hit with a 25 percent tariff that would take effect August 1.