South Korea's economy barely grew in the fourth quarter of 2024, as the country's worst political crisis in decades hurts already weakened domestic demand and threatens to further sap growth in a year of rising external risks under a second Trump presidency.

South Korea's economy grew less than expected in the fourth quarter, data showed Thursday, as it was hit by the fallout from President Yoon Suk Yeol's brief declaration of martial law that hit consumer confidence and domestic demand.

South Korea's economy barely grew in the fourth quarter of 2024, missing market expectations, as domestic demand was hurt in part by the country's worst political crisis in decades, raising bets for more fiscal and monetary support to revive growth.

South Koreas economy saw limited growth in the fourth quarter, expanding just 0.2% seasonally adjusted, as political instability dampened consumer spending, according to a Reuters poll of economists.

South Korea’s central bank warned that prolonged political instability following the martial law crisis could drag the country’s annual economic growth rate to the mid-1% range. The BOK slashed Korea’s 2025 growth forecast to 1.

The Bank of Korea (BOK) said Monday its outlook for South Korea's economic growth this year may be lowered to as low as 1.6 percent due to a political crisis sparked by suspended President Yoon Suk Yeol and weak domestic demand.