FAMAGUSTA GAZETTE – South Korea’s economy unexpectedly contracted by 0.1% in the first quarter of 2025, according to the Bank of Korea, amid political turmoil and escalating trade tensions.
The downturn coincides with former U.S. President Donald Trump’s proposed 25% “reciprocal” tariff on South Korean goods, which has rattled Asia’s fourth-largest economy.
Stock prices have plummeted, and the South Korean won has hit its lowest level since 2009.
Exports fell by 5% in mid-April compared to the previous year, with shipments to the United States dropping over 14%.
The International Monetary Fund (IMF) has revised South Korea’s growth forecast for 2025 from 2% to 1%, citing global economic uncertainty and trade disruptions.