South Korea's Economy Contracts 0.3% in Q4 2025, Largest in Three Years
South Korea's GDP shrank 0.3% in Q4 2025, the steepest decline in three years, missing forecasts for 0.1% growth. The contraction was driven by declines in construction and exports.
Insights:
South Korea's economy contracted by 0.3% in the fourth quarter of 2025 on a seasonally adjusted basis, marking the largest contraction in three years and falling short of economist expectations for a 0.1% increase. This downturn represents a significant reversal from the 1.3% expansion recorded in the third quarter of 2025, according to advanced estimates released on January 22, 2026.
