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

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

//business-finance.news-articles.net/content/202 .. n-q4-as-political-crisis-jolts-2025-outlook.html

Published in Business and Finance on Wednesday, January 22nd 2025 at 23:00 GMT by MSN

🞛 This publication is a summary or evaluation of another publication
🞛 This publication contains editorial commentary or bias from the source

South Korea's economy barely grew in the fourth quarter of 2024, as the country's worst political crisis in decades hurts already weakened domestic demand and threatens to further sap growth in a year of rising external risks under a second Trump presidency.

2025-01-22 194 x 130 / 2850 Bytes

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.

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