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.

洞察:
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.
Street vendors (L) wait for customers at Myeongdong shopping district in Seoul, South Korea, January 9, 2023. REUTERS/Kim Hong-Ji
Street vendors (L) wait for customers at Myeongdong shopping district in Seoul, South Korea, January 9, 2023. REUTERS/Kim Hong-Ji
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