South Korea Q1 GDP 0.1 % contracts

South Korea GDP She contracted 0.1 % on an annual basis in the first quarter, according to progress numbers, which represents the first contraction in its economy since the fourth quarter of 2020.

The GDP number was absent from an increase of 0.1 % expected through the Reuters poll, a reflection compared to a rise of 1.2 % in the last quarter of 2024.

Korea Bank data showed that the decrease was often due to the decrease in construction, as the sector is disabled by 12.4 % on an annual basis.

On a quarterly basis, gross domestic product shrinks by 0.2 %, with the reversal of 0.1 % in the last quarter of 2024.

In the monetary policy statement on April 17, it was the Bank of Korea Warning against South Korea GDP growth It is expected to decrease for 2025 from February 1.5 % forecast. The central bank had retained 2.75 % at the April meeting.

BOK noted that local economic growth was weaker than expected, as local demand and exports slowed due to long political uncertainty and the deterioration of commercial conditions.

Note on April 17 of Jeff NG, the head of Asia’s total strategy at Sumitomo Mitsui Banking Corporation expects to slow down, adding that there may be more cuts by BOK “in the coming months.” The next rate is expected to come in May.

The first quarter of South Korea was distinguished by the uncertainty, as the isolation trials of former President Yoon Sok and Prime Minister Han Daco continued.

The Constitutional Court canceled the dismissal of Han in March and returned it as a prosecutor, before Yun removal from the office On April 4. South Korea will go to the polls on June 3 to choose a new president.

The country -led economy was exported due to trade war disturbances. While US President Donald Trump suspended the blanket “mutual definitions” on April 9, South Korea is still undergoing a 25 % tariff on steel and cars, which is one of the largest exports to the country to the United States

South Korea Hyundai and Kia from The best selling eight brands selling In the United States also the country The fourth largest steel source for the United States

The GDP also comes as a South Korean team to the United States for commercial conversations, with the Acting President Han It is said that the saying He expects talks with the United States to pave the way to achieve a useful result of both parties.

The Ministry of Trade, Industry and Economy in South Korea He said on Thursday the agenda To meet with the United States is coordinated and has not yet ended.

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