FX.co ★ South Korea’s GDP Stumbles in Early 2025: A Shift from Growth to Contraction

In an unexpected economic turn, South Korea’s Gross Domestic Product (GDP) took a downward slide in the first quarter of 2025, slipping to -0.1%. This marks a stark contrast to the 1.2% growth recorded in the previous quarter, signaling a significant economic shift over the past year.

The recent data, updated on April 23, 2025, reflects a year-over-year comparison, demonstrating the change in the economic landscape from early 2024. Analysts and policymakers are now tasked with evaluating the factors contributing to this contraction and formulating strategies to stabilize the economy.

This economic hiccup underscores challenges faced by South Korea amid global uncertainties and domestic economic pressures. The sudden dip from positive growth to negative territory is prompting concerns about potential long-term impacts and the need for responsive economic policy measures. As South Korea navigates these economic waters, all eyes will be on the government’s next steps to rejuvenate growth and economic stability.