Investing.com– South Korea’s economy grew less than expected in the fourth quarter, central bank estimates showed on Thursday, as the country grappled with increased political upheaval.
Gross domestic product grew 0.1% quarter-on-quarter in the three months to Dec 31, less than expectations of 0.2%, preliminary data from the central bank showed.
Year-on-year GDP slowed to 1.2% from 1.5%, also missing estimates of 1.4%.
The weak print came as economic activity in the country was disrupted by heightened political turmoil through December, after impeached President Yun Suk Yeol attempted to unsuccessfully declare martial law.
The turmoil added to pressure on an already slowing economy, as the country faced slower household spending, a brewing property market crisis and weakening export demand.
Thursday’s data further reinforces expectations of more interest rate cuts from the Bank of Korea to support the economy.
The central bank had kicked off an easing cycle in 2024, but unexpectedly kept rates steady at a meeting last week.
