In the fourth quarter of last year, South Korea's economic growth rate remained in the lower ranks among major countries. With a domestic recession and political instability overlapping, the possibility of negative growth is raised for the first quarter of this year.
According to the Bank of Korea's Economic Statistics System (ECOS) on the 6th, the real Gross Domestic Product (GDP) growth rate in the fourth quarter of last year was 0.06% compared to the previous quarter, ranking 29th among 37 countries, including China, in the Organization for Economic Cooperation and Development (OECD). This is lower than the preliminary figure (0.1%) announced by the Bank of Korea last month, barely avoiding negative growth.
The top five countries, including Ireland (3.613%), Denmark (1.849%), Turkey (1.688%), China (1.600%), and Portugal (1.542%), all recorded growth rates exceeding 1%. The United States (0.607%) and Japan (0.556%) also ranked higher than South Korea.
South Korea's quarterly growth rate ranking has been in the lower ranks for three consecutive quarters. In the first quarter of last year, it was 1.3%, ranking 6th, but it continued to decline with 2nd quarter -0.228% (32nd), 3rd quarter 0.1% (26th), and 4th quarter 0.066% (29th). This is interpreted as a result of combined uncertainties both domestically and internationally, such as sluggish consumption and investment, and political chaos in December.
Forecasts indicate that it will not be easy for the economy to rebound in the first quarter of this year. Amidst the impact of large-scale wildfires and the prolonged political situation, consumer and investment sentiment has been subdued, and signs of a slowdown in export growth are also emerging. According to the Bank of Korea, January's export figure fell 9.1% compared to the same month last year, marking a return to decline for the first time in 16 months. The Bank of Korea forecasted a growth rate of 0.2% for the first quarter of this year in February, but there are predictions that achieving this will not be easy.