S. Korea's Q4 GDP barely grows amid political crisis

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.

- 

SEOUL -

In December, consumer and business sentiment dampened amid political chaos, after President Yoon Suk Yeol was impeached over his short-lived bid to impose martial law, followed by the impeachment of Prime Minister Han Duck-soo.

That impact saw gross domestic product (GDP) expand just 0.1 per cent from a quarter earlier on a seasonally adjusted basis, the Bank of Korea's (BOK) advanced estimates showed on Jan 23.

It was weaker than increases of 0.2 per cent forecast in a Reuters survey and 0.5 per cent projected by the central bank less than a week before Mr Yoon's Dec 3 martial law edict.

Asia's fourth-largest economy has struggled through 2024, having narrowly avoided a technical recession in the third quarter when it grew 0.1 per cent following a 0.2 per cent contraction in the second.

Worryingly, the BOK and economists expect the political crisis to remain a dampener on growth in 2025 too.