South Korea fourth-quarter GDP grows at its slowest pace in six quarters, missing expectations

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

Advance figures missed the 1.4% expansion expected by economists polled by Reuters, and the growth was also softer compared with the 1.5% rise seen in the third quarter of 2024.

On a quarter-on-quarter basis, GDP growth also missed expectations, with the economy growing 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 with last year’s 1.4% gain.

The Bank of Korea said that in 2024, private consumption growth fell and investment in the construction sector declined, but government consumption, facility investment, and exports growth rose, according to a Google translation of the release in Korean.

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

The GDP reading comes after the Bank of Korea made two surprising moves in recent months, first cutting rates by 25 basis points in late November and then holding rates in its meeting on Jan. 16 meeting. The BOK’s policy rate currently stands at 3%.

— This is breaking news, please check back for updates.