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South Korea's Economy Hits Six-Quarter Low Growth

1/24/2025

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Summary

Story summary

South Korea's economy stumbled in Q4 2024, growing just 1.2% year-on-year, falling short of expectations amid political turmoil and sluggish domestic demand. The Bank of Korea noted a mere 0.1% growth from the previous quarter, the weakest in six quarters. With 2025 growth forecasts now lowered to 1.6-1.7%, worries about economic stability loom large.

History

Historical Context

South Korea's economic struggles in Q4 2024 echo the 1937-38 recession in the U.S., where tight monetary policies led to stagnation. Similar to then, current political turmoil and low domestic demand hinder growth, raising concerns about economic stability and recovery prospects in a global context.

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Story summary

South Korea's economy stumbled in Q4 2024, growing just 1.2% year-on-year, falling short of expectations amid political turmoil and sluggish domestic demand. The Bank of Korea noted a mere 0.1% growth from the previous quarter, the weakest in six quarters. With 2025 growth forecasts now lowered to 1.6-1.7%, worries about economic stability loom large.

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