Seoul: South Korea recorded the lowest economic growth among 19 major economies during the first quarter of 2025, according to data released by the Bank of Korea (BOK).
According to Bahrain News Agency, the country's real gross domestic product (GDP) contracted by 0.246% in the January-March period compared to the previous quarter. This represented the weakest performance among the countries that have so far published their Q1 figures, including the United States, Canada, France, Germany, and China.
Ireland recorded the highest quarterly growth rate at 3.219%, followed by China at 1.2% and Indonesia at 1.124%. Spain posted a growth rate of 0.568%, with Canada and Germany both at 0.4%. France saw a 0.127% increase, while the United States contracted by 0.069% and Hungary by 0.152%.
Japan and the United Kingdom have not yet released official first-quarter data. However, market forecasts indicate Japan may see a contraction of around 0.1%, while the United Kingdom is expected to post a 0.6% increase.
The Bank of Korea attributed the economic contraction to multiple factors, including reduced consumer demand, delayed investment in high-performance semiconductor production, and temporary suspension of certain construction projects. Large-scale wildfires also affected overall activity during the quarter.
The BOK had previously forecast a 1.5% growth rate for the full year 2025. However, officials have since acknowledged that the outlook may be subject to revision in light of recent economic trends.
South Korea's economy expanded by 1.3% in the first quarter of 2024, but recorded a 0.2% contraction in the second quarter, followed by marginal growth of 0.1% in both the third and fourth quarters.