South Korea’s Economy Flat in Q1, Central Bank Reports

South Korea's economy failed to grow year-on-year in the first quarter of 2025, revised figures from Seoul's central bank showed Thursday. Asia's fourth-largest economy, an export giant and semiconductor powerhouse, has been weighed down by trade tensions and political turmoil sparked by impeached ex-president Yoon Suk Yeol's brief imposition of martial law in December."Real gross domestic product (GDP) fell by zero percent compared to the same period last year," the Bank of Korea said. Compared to the last quarter of 2024, the economy contracted by 0.2 percent, the central bank said.

Initial estimates by the central bank in April put year-on-year growth down 0.1. It marks the first time South Korea has posted four consecutive quarters of growth below 0.1 percent.In May, the central bank cut its benchmark interest rate from 2.75 to 2.5 percent -- its lowest level since October  2022. It also predicted the economy would expand just 0.8 percent this year, down from the 1.5 percent projected in February.