South Korea's first-quarter economic growth rate has been shown to be at the bottom level compared to major countries in the world. Not only is it rare for a country like South Korea to experience a first-quarter contraction (-0.2%), but the magnitude of the decline was also greater than in any other country.
According to the Bank of Korea on the 11th, South Korea's real gross domestic product (GDP) growth rate for the first quarter of this year (compared to the previous quarter) was -0.246%, the lowest among the 19 countries that have announced first-quarter growth rates so far. Among the 19 countries, 18 are members of the Organisation for Economic Co-operation and Development (OECD), with China being the only non-OECD country included.
Ireland had the highest growth rate in the first quarter at 3.219%, followed by China (1.2%) and Indonesia (1.124%). Spain, which has a similar GDP size as South Korea, recorded 0.568% and ranked fourth. The United States, the world's largest economy and the one most directly impacted by its own tariff policy confusion, also fared worse than South Korea at -0.069%.
Among major countries, Japan and the United Kingdom have not yet officially released their first-quarter growth rates, but their performance is expected to be better than that of South Korea. According to a recent survey by Bloomberg of the growth rate forecasts from major institutions, Japan and the United Kingdom are estimated to have growth rates of -0.1% and 0.6%, respectively, for the first quarter.
South Korea's quarterly growth rate has been ranking among the lowest in the world for a year. In the first quarter of last year, South Korea's growth rate reached a surprising 1.3%, ranking sixth among 37 major countries (excluding Colombia and Lithuania, 36 OECD member countries + China), following China (1.5%). However, by the second quarter (-0.228%), it fell to 32nd place and failed to rebound in the third quarter (0.1%), remaining at 26th.
As the atmosphere of martial law and impeachment continued into December, domestic demand shrank further, and the fourth quarter of last year (0.066%, 29th) also recorded growth in the 0% range, leading to a drop to 29th place. While the growth rates of all 37 countries surveyed by the Bank of Korea have not yet been fully released, the growth rate for the first quarter of this year is also expected to remain at the bottom.