Japan’s Role in Pushing
- South Korea's economic expansion nearly ground to a halt in the fourth quarter of last year, placing it among the slowest-growing economies within the Organization for Economic Cooperation...
- Out of 36 OECD member countries and China, South Korea's growth ranked 29th, according to the BOK's analysis.
- While an initial announcement last month indicated a 0.1% growth rate for the fourth quarter, the revised figure reveals an even weaker 0.06%, barely avoiding negative growth.
South Korea’s Economic Growth Stalls in Q4, Ranks Low among OECD Nations
Table of Contents
South Korea’s economic expansion nearly ground to a halt in the fourth quarter of last year, placing it among the slowest-growing economies within the Organization for Economic Cooperation and Progress (OECD). The Bank of Korea (BOK) reported a real gross domestic product (GDP) growth of just 0.06% for the October-december period.
Dismal Performance Compared to Peers
Out of 36 OECD member countries and China, South Korea’s growth ranked 29th, according to the BOK’s analysis. This sluggish performance raises concerns about a potential economic contraction in the first quarter of this year.
Revised figures Highlight Weakness
While an initial announcement last month indicated a 0.1% growth rate for the fourth quarter, the revised figure reveals an even weaker 0.06%, barely avoiding negative growth.
Global Comparison
Ireland led the pack with a growth rate of 3.613%, followed by Denmark (1.849%), Turkey (1.688%), China (1.600%), and Portugal (1.542%). The United States (0.607%) ranked 17th, while Japan (0.556%) came in at 20th, both surpassing South Korea’s performance.
fluctuations Throughout the Year
South Korea’s economic performance fluctuated throughout the year. After exceeding market expectations with a 1.3% growth in the first quarter, placing it sixth after China’s 1.5%,the growth rate plummeted to -0.228% in the second quarter (32nd position) and then slightly recovered to 0.1% in the third quarter (26th position).
Domestic Demand Dwindles
The contraction in domestic demand, fueled by sluggish consumption and construction investment, further exacerbated the economic slowdown in the fourth quarter.
Bleak Outlook for Early 2025
The outlook for the first quarter of this year (January-March) remains uncertain, with estimates suggesting a growth rate hovering around 0%.
Contributing factors
analysts attribute the slowdown to a combination of factors, including weak domestic demand stemming from political uncertainty and large-scale forest fires. Lingering effects from U.S.tariff policies under President Donald Trump also contributed to a slowdown in exports.
Concerns Over Export Economy
There are growing concerns that political instability is negatively impacting the export economy.
Impact of Forest Fires
the forest fires in late March are expected to have a slight, yet negative, impact on the growth rate in the first quarter, according to analysts.
South Korea’s Economic Slowdown: A Q&A
Here’s a breakdown of South korea’s recent economic performance, presented in a Q&A format to provide clarity and insight:
Q: What was South Korea’s GDP growth in the fourth quarter of 2024?
A: south Korea’s real gross domestic product (GDP) grew by a mere 0.06% in the fourth quarter (October-December) of last year, according to the bank of Korea (BOK). This marks a significant slowdown.
Q: How dose this growth rate compare to other OECD nations?
A: South Korea’s 0.06% growth placed it 29th out of 36 OECD member countries and China. This indicates a very sluggish performance relative to its peers.
Q: What factors contributed to this slow growth in Q4 2024?
A: Several factors played a role in the slowdown:
Weak Domestic Demand: Sluggish consumption and construction investment significantly hampered growth.
Political Uncertainty: Uncertainty in the political landscape also played a significant role.
Forest Fires: Large-scale forest fires, notably those in late March, are expected to have negatively impacted growth in the first quarter of 2025.
U.S. Tariff Policies: Lingering effects from U.S. tariff policies under President Donald Trump also contributed to the slowdown in exports.
Q: What revisions were made to the initial growth figures?
A: The initial announcement suggested a 0.1% growth rate for the fourth quarter. Though, the revised figure showed an even weaker 0.06% growth,putting the economy close to stagnation.
Q: How did South Korea’s economic performance fluctuate throughout 2024?
A: South Korea’s economic performance varied throughout the year:
Q1: The year started strong,with a 1.3% growth rate (sixth place).
Q2: Growth plummeted to -0.228% (32nd position).
Q3: A slight recovery to 0.1% growth (26th position).
Q4: Growth stalled at 0.06%.
Q: How does South Korea’s performance compare to other countries in Q4 2024?
A: Here’s a comparison of the growth rates of some key countries in Q4 2024:
| Country | Growth Rate (%) | Ranking |
|—————–|—————–|———|
| Ireland | 3.613 | N/A |
| Denmark | 1.849 | N/A |
| Turkey | 1.688 | N/A |
| China | 1.600 | N/A |
| Portugal | 1.542 | N/A |
| United States | 0.607 | 17th |
| Japan | 0.556 | 20th |
| South Korea | 0.060 | 29th |
Q: What is the outlook for South korea’s economy in early 2025?
A: The outlook for the first quarter of 2025 (January-March) is uncertain, with estimates suggesting growth will hover around 0%.
Q: Are there any specific concerns for South Korea’s export economy?
A: Yes, there are growing concerns that political instability is negatively impacting the export economy.