South Korea’s gross domestic product grew in the fourth quarter at its slowest pace in six quarters, missing expectations

South Korea’s economy grew by 1.2% year-on-year in the fourth quarter, marking its slowest expansion since the second quarter of 2023.

Advance numbers are absent The 1.4% expansion expected by economists polled by Reuters, and growth was weaker compared to a 1.5% rise in the third quarter of 2024.

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

However, full-year GDP growth for 2024 came in at 2% compared to last year’s gain of 1.4%.

The Bank of Korea said In 2024, private consumption growth declined and investment in the construction sector fell, but government consumption, utility investment and export growth rose, according to a Google translation of the Korean-language version.

The BOK also said that growth in the service industry and the construction industry declined, but the manufacturing industry grew at a faster rate compared to last year.

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

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