South Korea’s fourth-quarter GDP grew at the slowest pace in six quarters, missing expectations

South Korea’s economy expanded 1.2% annually in the fourth quarter, marking its slowest expansion since the second quarter of 2023.

Advanced numbers are missed The 1.4% expansion and growth expected by economists polled by Reuters was softer than the 1.5% growth seen in the third quarter of 2024.

On a quarterly basis, GDP growth also missed expectations, with the economy growing just 0.1%, compared with a 0.2% forecast in a Reuters poll.

However, full-year GDP growth for 2024 is 2%, compared to last year’s 1.4% growth.

This was reported by the Bank of Korea In 2024, private consumption growth slowed and investment in the construction sector declined, but government consumption, facility investment and export growth increased.

The IOC also said that growth in the service industry and construction industry slowed, but the manufacturing industry grew faster than last year.

The GDP figure comes after the Bank of Korea made two surprising moves in recent months, first cutting interest rates by 25 basis points in late November and then keeping rates on hold at its January 16 meeting. The IOC’s policy rate is currently at 3%.

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