emirates7 - South Korea's economy experienced its first contraction in about a year during the first quarter of 2025, according to data released Thursday by the Bank of Korea (BOK).
Preliminary figures that the nation's real gross domestic product (GDP)—a key indicator of economic performance—fell by 0.2 percent between January and March compared to the previous quarter.
As reported by Yonhap News Agency, South Korea, the fourth-largest economy in Asia, grew by 1.3 percent in the first quarter of 2024 but then dipped into negative territory in the second quarter with a 0.2 percent decline. It barely managed slight growth of 0.1 percent in both the third and fourth quarters of last year.
The downturn has been attributed to a slowdown in export growth and continued weakness in domestic demand.
Although the BOK had initially projected a 1.5 percent economic expansion for 2025, Governor Rhee Chang-yong recently acknowledged that the estimate might have been "too optimistic," citing concerns over U.S. tariff policies.
Preliminary figures that the nation's real gross domestic product (GDP)—a key indicator of economic performance—fell by 0.2 percent between January and March compared to the previous quarter.
As reported by Yonhap News Agency, South Korea, the fourth-largest economy in Asia, grew by 1.3 percent in the first quarter of 2024 but then dipped into negative territory in the second quarter with a 0.2 percent decline. It barely managed slight growth of 0.1 percent in both the third and fourth quarters of last year.
The downturn has been attributed to a slowdown in export growth and continued weakness in domestic demand.
Although the BOK had initially projected a 1.5 percent economic expansion for 2025, Governor Rhee Chang-yong recently acknowledged that the estimate might have been "too optimistic," citing concerns over U.S. tariff policies.