Containers are stacked high at Busan Port in Busan on April 30. [YONHAP]
Korea posted the lowest economic growth among 19 major economies in the first quarter, data showed Sunday, amid a domestic political crisis and uncertainties caused by U.S. President Donald Trump’s administration’s sweeping tariff policies.
The country’s real GDP — a key measure of economic growth — shrank by 0.246 percent in the January-March period from a quarter earlier, according to the data from the Bank of Korea (BOK).
It marked the weakest performance among the 19 major nations that have released their first-quarter growth figures, including the United States, Canada, France, Germany and China.
Ireland recorded the highest growth rate at 3.219 percent, followed by China with 1.2 percent and Indonesia with 1.124 percent.
Spain, which has a similar GDP to Korea, ranked fourth with a growth rate of 0.568 percent. Canada logged a 0.4 percent expansion in the first quarter, while Italy and Germany posted growth rates of 0.4 percent and 0.26 percent, respectively. France also saw positive growth at 0.127 percent.
The U.S. economy contracted by 0.069 percent, and Hungary’s economy shrank by 0.152 percent.
Japan and Britain have yet to disclose their first-quarter data, but a Bloomberg survey of major institutions showed that the Japanese economy is expected to contract by 0.1 percent, while Britain is forecast to grow by 0.6 percent.
Korea’s unexpected negative growth was partly attributed to political turmoil triggered by former President Yoon Suk Yeol’s imposition of martial law on Dec. 3, which disrupted the economy and dampened consumer spending. Yoon was removed from office April 4.
The United States’ sweeping tariff scheme has also weighed on the trade-dependent Korean economy. Trump earlier announced “reciprocal” tariffs that include a 25 percent tariff on Korea, though he soon decided to put on hold its implementation for 90 days.
Apart from the proposed reciprocal tariffs, existing tariffs on automobiles and steel remain in effect.
The BOK earlier presented a 1.5 percent growth outlook for the Korean economy in 2025, but Gov. Rhee Chang-yong later told reporters that the forecast may have been “too optimistic.”
The central bank also cited several “unusual factors” that weighed on growth, including delayed demand for high-performance semiconductors, the suspension of projects at some construction sites and large-scale wildfires.
Yonhap
