South Korea's economic growth experienced a slight decrease in the fourth quarter of 2025, as newly released figures show the Gross Domestic Product (GDP) growth rate halting at 1.5%. This is a drop from the 1.8% growth rate observed in the third quarter of 2025, according to data updated up till 21 January 2026.
The fourth-quarter performance reflects a year-over-year comparison, highlighting a slowdown in economic momentum when compared to the previous period. While the decrease is subtle, it marks a point of concern for policymakers and economic analysts who are closely monitoring the global economic climates impacting South Korea's economic activities.
Given the current economic challenges, this dip in GDP growth underscores the need for strategic adjustments to sustain and enhance South Korea's economic health. The year-over-year analysis offers a critical lens into the effectiveness of existing economic policies and provides an opportunity for recalibration to ensure a more robust economic trajectory moving forward.