Worrying signals from S. Korea’s 2023 GDP data

SOUTH Korea’s economy grew 2.2% in real terms during the final quarter of last year compared to the same period in 2022, marking an acceleration from a 1.4% rise in the third quarter and bringing growth for the entire of 2023 to 1.4%, according to revised data released by the country’s central bank last week.

The headline figures looked fine overall, with growth accelerating in the October-December period compared to the preceding quarter, defying fears that Asia’s fourth-largest economy may lose momentum under pressure from policy interest rates hovering at a 15-year high and inflation standing above the target for an extended period.