UOB Group’s Economist Ho Woei Chen reviews the latest flash Q4 GDP figures in South Korea.

Key Takeaways

“South Korea’s advance GDP moderated to a growth of 1.4% y/y in 4Q22 from 3.1% y/y in 3Q22. The economy also recorded its first sequential decline since the technical recession in 1H20, contracting by -0.4% q/q SA in 4Q22. For the full-year, South Korea’s GDP grew 2.6% in 2022 compared to 4.1% in 2021.”

“Private consumption recovery turned out to be weaker-than-expected while external demand slowed.”

“We now expect a slower economic growth of 1.3% in 2023 compared to our earlier forecast of 1.7%.”

“We maintain our view that the BOK is done with its rate hikes and would stay on hold at 3.50% through 2023.”