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South Korea GDP contracts 0.1% in the first quarter amid political uncertainty

  • South Korea's economy contracted by 0.1% in the first quarter of 2025, marking a decline amid political chaos and global trade tensions, according to the Bank of Korea.
  • Exports to the U.S. Dropped by more than 14%, contributing to a decline in shipments during January to March, as stated by the Korea Customs Service.
  • Political turmoil followed the impeachment of former President Yoon Suk Yeol on April 4, which negatively impacted consumer spending and confidence.
  • The International Monetary Fund lowered its growth forecast for South Korea to 1.0%, reflecting concerns over tariffs and domestic challenges.
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S. Korea's economy shrinks in first quarter as trade war hits exports

South Korea's economy unexpectedly contracted 0.1 percent in the first three months of this year, the country's central bank said Thursday, as the Asian export giant reels from months of political chaos and heightened trade tensions.

·Missoula, United States
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Bloomberg broke the news in United States on Wednesday, April 23, 2025.
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