Data released by the Bank of Korea on Tuesday revealed that the nation's economy grew by 1% in 2025, propelled by strong exports, but experienced negative growth in the final quarter. Preliminary figures from the central bank indicate that the country's real Gross Domestic Product (GDP), a primary gauge of economic expansion, shrank by 0.2% from the previous quarter during the October to December period. This contraction was less severe than the previously estimated decline of 0.3%. This marks the first instance of quarterly economic contraction since the first quarter of the previous year, when the economy also contracted by 0.2%. On an annualized basis, South Korea's GDP increased by 1.6% in the fourth quarter, a slower pace compared to the 1.8% growth recorded in the third quarter. For the full year of 2025, the South Korean economy expanded by 1%, aligning with the Bank of Korea's earlier forecast. However, this growth rate represents a deceleration from the 2% growth seen in the previous year. The data also showed that South Korea's per capita Gross National Income (GNI) reached $36,855 in 2025, reflecting a 0.3% increase from the year before. The Bank of Korea stated that, influenced by a weak Korean won, the nation's GNI measured in the local currency grew by 4.6%.
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