South Korea Encounters Economic Struggles
(MENAFN) South Korea experienced the weakest economic growth among 19 major global economies in the first quarter, following months of political instability and uncertainties arising from United States Leader Donald Trump’s reciprocal tariffs, based on data released on Sunday.
The country's real gross domestic product (GDP), a key indicator of economic performance, contracted by 0.246 percent in the January-March period compared to the previous quarter, a news agency reported, citing data from the Bank of Korea (BOK).
This decline marked the most significant quarterly contraction among the 19 major economies, which included nations such as the US, Canada, France, Germany, as well as China.
In contrast, Ireland recorded the highest growth rate of 3.219 percent, followed by China and Indonesia, which saw growth rates of 1.2 percent and 1.124 percent, respectively.
South Korea’s unexpected negative growth can be partly linked to its worst political crisis in recent history, sparked by former Leader Yoon Suk Yeol’s failed martial law attempt on December 3.
This controversial move disrupted the local economy and negatively impacted consumer spending.
Yoon was removed from office on April 4, with a snap presidential election set for June 3.
Furthermore, Trump's expansive tariff policies have further affected the trade-dependent South Korean economy.
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