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S.Korea's economy barely grows in Q4 as political crisis jolts 2025 outlook

South Korea's economy experienced minimal growth in the fourth quarter of 2023, with a GDP increase of just 0.4% from the previous quarter, as reported by the Bank of Korea. This sluggish growth was attributed to a combination of factors including a political crisis that has introduced uncertainty into the economic outlook for 2025. The political turmoil, involving allegations of corruption and power abuse against high-ranking officials, has not only shaken public confidence but also potentially deterred foreign investment. Additionally, the economy faced challenges from declining exports, particularly in semiconductors, and a slowdown in consumer spending due to high household debt levels. Despite these headwinds, there are some positive signs with inflation cooling down, which might provide the central bank with room to adjust monetary policies to stimulate growth. However, the overall economic environment remains fragile, with experts cautioning that sustained recovery will require political stability and structural reforms.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/markets/s-korea-s-economy-barely-grows-in-q4-as-political-crisis-jolts-2025-outlook/ar-AA1xH8zn ]