South Korea posts lowest Q1 economic growth among major economies: Data

ANKARA

South Korea logged the lowest economic growth among 19 major economies in the first quarter, following a months-long domestic political crisis and uncertainties caused by US President Donald Trump's reciprocal tariffs, data showed Sunday.

The real gross domestic product (GDP) -- a key measure of economic growth -- of Asia's fourth-largest economy shrank 0.246% in the January-March period from the previous quarter, Yonhap News reported, quoting data from the Bank of Korea (BOK).

It marked the weakest quarterly performance among 19 major nations, including the US, Canada, France, Germany and China.

Ireland recorded the highest growth rate at 3.219%, followed by China and Indonesia, which posted 1.2% and 1.124% growth rates, respectively.

South Korea's unexpected negative growth was partly attributed to its worst political chaos in recent history, triggered by former President Yoon Suk Yeol's botched martial law attempt on Dec. 3.

The shocking move disrupted the local economy and dampened consumer spending.

Yoon was removed from office April 4, and a snap presidential election is scheduled for June 3.

Trump's sweeping tariff scheme has also taken a toll on the trade-dependent South Korean economy.

Trump began to impose "reciprocal" tariffs on trading partners last month, including a 25% levy on South Korea, though he soon decided to place the implementation on hold for 90 days.

The BOK cited several "unusual factors" that contributed to the low growth, including delayed demand for high-performance semiconductors, the suspension of projects at some construction sites and large-scale wildfires.

The South Korean economy expanded 1.3% in the first quarter of 2024 but slipped into a contraction in the second with a 0.2% decline, followed by marginal growth of 0.1% in the third and fourth quarters.

*Writing by Aamir Latif