South Korea's economy exhibited resilience in 2024, achieving a full-year GDP growth of 2%, surpassing economists' expectations of 1.4% as forecasted by a Reuters poll. However, the fourth quarter of the year showcased a slowdown, marking the slowest expansion since the second quarter of 2023. The country's GDP grew by merely 1.2% year on year in the fourth quarter and just 0.1% on a quarter-on-quarter basis, missing the anticipated 0.2% rise.
The latest economic data reveals that while South Korea's overall growth exceeded predictions, the final quarter of 2024 did not perform as robustly as the preceding quarters. Economists had anticipated a year-end GDP growth of 1.4%, but the actual expansion was notably slower at 0.1% quarter-on-quarter. This figure fell short of expectations, contributing to a softer economic performance compared to the third quarter's 1.5% increase.
Despite the sluggish end to the year, South Korea's economy managed to outpace last year's full-year growth of 1.4%, reaching an improved rate of 2% in 2024. This achievement underscores the country's ability to navigate economic challenges, although concerns remain over the pace of growth as the year concluded.
Economists had predicted more robust results for the fourth quarter, expecting a 0.2% quarter-on-quarter growth according to Reuters' forecasts. The actual outcome, however, highlighted a deceleration in economic momentum, with only a 0.1% rise recorded. Such figures indicate a cautious outlook for future economic activities, emphasizing the need for strategic measures to invigorate growth in upcoming quarters.