South Korea Q1 GDP shrinks 0.2% as exports wane

Seoul boosts fiscal outlays to mitigate damage of domestic turmoil, trade tensions

20250422 South Korea GDP

A traditional market in Seoul on April 20: South Korea's monthslong political crisis weighs on consumption. (Photo by Yuichi Nitta) 

STEVEN BOROWIEC

SEOUL -- South Korea's economy contracted in the first quarter of this year, as exports dipped and a monthslong political crisis weighed on consumption, according to central bank data released Thursday.

The Bank of Korea said in an advance estimate that real gross domestic product in Asia's fourth-largest economy shrank 0.2% during the January to March period compared with the previous quarter.

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