US EditionSouth Korean Economy Hardly Grew in Q4 as Domestic Demand Weakened: Reuters Poll
South Korea’s GDP fell 0.3% in Q4 2025 due to fading fiscal stimulus, weaker consumption and net exports, with annual growth at 1%, the Bank of Korea said.
- Bank of Korea advance estimates show South Korea's GDP contracted 0.3% quarter-on-quarter in October–December 2025.
- Weakening domestic demand and fading fiscal stimulus eroded growth momentum, while the end-of-year pullback was amplified by a base effect after a 1.3% third-quarter gain.
- Trade flows reveal net exports down 2.1% and construction investment dropped 3.9%, weighing on output despite exports rising in some measures.
- Policy makers face constrained options as a wobbly won and mounting financial risks limited easing room, prompting the Bank of Korea to shift to a neutral stance and hold rates steady last week.
- For the year, the economy expanded 1.0% according to Bank of Korea advance estimates, the BOK forecasts 1.8% growth in 2026, and the government expects 2.0%, while the Kospi index briefly topped 5,000 and Seoul apartment prices gained as of January 12.
23 Articles
23 Articles
Daily Journal
South Korea's economy grew just 1% in 2025, lowest in five years
South Korea logged its slowest growth in half a decade in 2025, the country's central bank said Thursday, while exports rose on the back of a boom in artificial intelligence.
South Korea economy contracts to shocking 3-year-low in December quarter on decline in demand
Gross domestic product decreased 0.3% in the October-December period from the preceding three months on a seasonally adjusted basis. Construction investment, down 3.9%, was the biggest drag.
Financial Post
The Straits TimesSouth Korean Economy Unexpectedly Shrinks on Broad Weakness
(Bloomberg) — South Korea’s economy shrank in the final quarter of 2025 due to a broad pullback in demand, underscoring the challenge for authorities whose policy options to stimulate growth are constrained by a wobbly won and mounting financial risks.
Korea's economy grows 1% in 2025: BOK
Korea’s gross domestic product (GDP) grew 1 percent in 2025 from the previous year, driven by strong exports despite weakness in the construction sector, central bank data showed, Thursday. It is half the 2 percent expansion in 2024. In the fourth quarter of last year, GDP declined 0.3 percent from the previous quarter. The GDP contracted 0.2 percent in the first quarter of 2025, rose 0.7 percent in the second quarter and 1.3 percent in the thir…
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