South Korea’s economy rebounded in the fourth quarter of 2022, driven by strong exports, according to data released by the Bank of Korea. The country’s gross domestic product (GDP) grew by 0.6% in the October-December period compared to the previous quarter, marking a turnaround from the 0.4% contraction in the third quarter. The rebound was primarily driven by a surge in exports, which increased by 10.1% quarter-on-quarter. This growth was fueled by robust demand for semiconductors, petrochemicals, and automobiles. The recovery in exports helped offset a decline in domestic demand, which fell by 0.4% due to factors such as rising inflation and interest rate hikes..
The latest economic data provides some relief for South Korea, which has been grappling with a slowdown in growth due to global economic headwinds. The country’s economy grew by only 2.6% in 2022, the slowest pace in over a decade. However, the rebound in exports in the fourth quarter suggests that the economy may be stabilizing..
The Bank of Korea raised its growth forecast for 2023 to 1.7%, up from a previous estimate of 1.6%. The central bank attributed the upward revision to the improvement in exports and the easing of global supply chain disruptions..
The South Korean government welcomed the economic rebound but emphasized the need for continued vigilance. Finance Minister Choo Kyung-ho said, .
