Financial News: South Korea GDP Contracts 0.2% In Q1

South Korea GDP Contracts 0.2% In Q1

04/23/2025 - 19:20:00 (RTTNews)

(RTTNews) - South Korea's gross domestic product was down a seasonally adjusted 0.2 percent on quarter in the first quarter of 2025, the Bank of Korea said in Thursday's preliminary reading.

That missed forecasts for an increase of 0.1 percent, which would have been unchanged from the three months prior.

On an annualized basis, GDP slipped 0.1 percent - again missing expectations for a gain of 0.2 percent and down from 1.2 percent in the previous three months.

Real gross domestic income (GDI) decreased by 0.4 percent compared to the previous quarter.

On the expenditure side, private consumption fell by 0.1 percent mainly due to a decrease in expenditures on service consumption (e.g., entertainment culture and healthcare services).

Government consumption fell by 0.1 percent as expenditures on health care benefits decreased. Construction investment shrank by 3.2 percent as building construction decreased.

Facilities investment shrank by 2.1 percent, led by a decrease in machinery (e.g., semiconductor manufacturing equipment). Exports shrank by 1.1 percent as exports of chemicals and machinery and equipment decreased. Imports shrank by 2.0 percent, as imports of energy items like crude oil and natural gas decreased.

On the production side, agriculture, forestry and fishing grew by 3.2 percent, mainly due to an increase in fishing yield.

Manufacturing shrank by 0.8 percent, centered on decreases in chemicals and chemical products and machinery and equipment.

Electricity, gas and water supply grew by 7.9 percent, largely as a result of an increase in gas, steam and air conditioning supply.

Construction shrank by 1.5 percent, owing to a decrease in building construction.

Services remained unchanged, led by increases in finance and insurance and information and communication, and offset by decreases in transportation and storage, wholesale and retail trade and accommodation and food services.

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