Commercial and residential buildings seen from the roof of the World Tower Lotte Corp. at sunset in Seoul, South Korea, on Tuesday, November 28, 2023.
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South Korea GDP Hired 0.1% year after year in the first quarter, according to early figures, marking the first contraction in its economy from the fourth quarter of 2020.
The GDP figure lost the 0.1% increase expected by a Reuters survey, and is a reversal compared to the 1.2% increase in the last quarter of 2024.
The data of the Bank of Korea showed that the fall was mainly due to a drop in construction, and the sector hired 12.4% year after year.
Quarterly, GDP was reduced to 0.2%, reverting the profit of 0.1% in the last quarter of 2024.
In his monetary policy statement on April 17, Bank of Korea had warned that the growth of GDP of South Korea By 2025 it is expected to fall below its February forecast of 1.5%. The Central Bank had maintained rates at 2.75% at the April meeting.
The Bok pointed out that internal economic growth has been weaker than expected, since domestic demand and exports have slowed due to prolonged political uncertainties and deteriorated commercial conditions.
A April 17 note by Jeff NG, Chief of Macro Strategy of Asia in Sumitomo Mitsui Banking Corporation, expected the deceleration, adding that the Bok may be more cuts “in the coming months.” He predicts the following rate cut in May.
The first quarter of South Korea has been marked with political uncertainty, since the political trials of former president Yoon Suk Yeol and Prime Minister have Duck-Soo prolonged.
The Constitutional Court attacked Han’s accusation in March and restored it as an interim president, before Remove Yoon from the office April 4. South Korea will go to the polls on June 3 to select a new president.
The country -led economy has also been achieved by the agitation of the commercial war. While the president of the United States, Donald Trump, had temporarily suspended his “reciprocal tariffs” of the blanket on April 9, South Korea is still subject to a 25% tariff on steel and cars, which are some of the country’s largest exports to the United States.
Hyundai and Kia of South Korea are among the The eight best selling brands In the United States the country is also The fourth largest steel exporter to the US.
The launch of the GDP also arrives when a South Korean team addresses the US for commercial conversations, with the acting president they have As reported, saying That he hopes that conversations with the United States allane the way for a mutually beneficial result.
Ministry of Commerce, Industry and Economics of South Korea The agenda said Thursday For the meeting with the United States it is being coordinated and is not yet ended.
These are last minute news, please consult the updates again.
