Korea ranks 22nd out of 24 countries in Q4 growth last year

[Financial News] In the fourth quarter of last year, South Korea's real gross domestic product (GDP) growth rate fell to near the bottom among major economies around the world.
According to the Bank of Korea (BOK)'s Economic Statistics System (ECOS) on the 17th, Korea's GDP growth rate in the fourth quarter of last year was -0.276%, ranking 22nd out of 24 countries that had released preliminary figures as of the previous day. Ireland recorded the lowest rate at -0.571%, followed by Norway at -0.333%.
Only five countries, including Canada (-0.1%) and Estonia (-0.012%), posted negative growth in the fourth quarter.
Lithuania recorded the highest fourth-quarter growth at 1.709%, followed by Indonesia (1.338%), China (1.2%), Poland (1.042%), Portugal (0.8%) and Mexico (0.8%).
Korea's quarterly growth rates last year swung sharply up and down like a roller coaster.
In the first quarter, growth fell to -0.219%, dragged down by weakened consumer sentiment in the wake of the martial law situation.
In the second quarter, the economy held up relatively well at 0.675%, as strong exports offset the shock from higher US tariffs, and in the third quarter it posted a stronger-than-expected 1.334%.
In the fourth quarter, however, the high base from the strong third quarter and a deep slump in the domestic construction sector pushed growth down to -0.276%, even lower than in the first quarter.
For the full year, growth came in at 1.0%. Without rounding, the figure is 0.97%, meaning it was technically in the 0% range.
This year, the Korean economy also faces numerous uncertainties.
In its economic outlook released last November, the Bank of Korea (BOK) projected this year's growth at 1.8%, later noting that the prolonged semiconductor upcycle could justify an upward revision. However, uncertainty has increased after US President Donald Trump last month urged swift investment in the United States and warned he would raise tariffs agreed between the two countries from 15% to 25%.
The BOK is expected to add the risk from US tariff shocks to its "pessimistic scenario" in its revised economic outlook to be released on the 26th.
In its outlook last August, the BOK estimated that if the average US tariff rate rose to 25%, Korea's growth could be 0.2 percentage points (p) lower than its baseline forecast.

jiany@fnnews.com Yeon Ji-an Reporter