INCHEON, SOUTH KOREA – MAY 22: Shoppers look at goods at a Wal-Mart store May 22, 2006 in Incheon, South Korea.
Chung Sung-jun | Getty Images News | Getty Images
South Korea’s economic growth slowed in the final quarter of last year amid weakening domestic demand as the impact from fiscal stimulus dissipated.
The economy expanded 1.5% in the October to December period from a year earlier, according to the official advance estimates, missing economists’ forecast for a 1.9% growth. That was compared against the 1.8% growth in the prior quarter when the economy expanded at its fastest pace in over a year.
On a quarterly basis, gross domestic product contracted 0.3%, marking a sharp slowdown from the 1.3% growth in the third quarter last year and disappointing economists’ expectations for 0.1% rate.
South Korean president Lee Jae Myung and American counterpart Donald Trump reached a trade agreement in November, which included $150 billion of Korean investment in the U.S. shipbuilding sector and an additional $200 billion earmarked for an investment pledge.
In exchange, the Trump administration agreed to reduce tariffs on South Korean cars and auto parts to 15% from 25%.
This is breaking news. Please refresh for updates.