S.Korea Q4 GDP 0.6 qq, versus 0.5 forecast
Exports lead, but outlook downbeat
Domestic demand slowing, construction investment slumps

SEOUL, Jan 25 Reuters South Korea beat expectations for growth in the fourth quarter of 2023 thanks to an export recovery which more than offset slowing domestic demand, although some analysts believe Asia39;s fourthlargest economy will struggle to maintain its momentum.

Gross domestic product GDP for the OctoberDecember quarter was 0.6 higher than the preceding three months on a seasonally adjusted basis, the Bank of Korea39;s BOK advance estimates showed on Thursday.

That compares with an expansion of 0.6 in the prior quarter and a median 0.5 increase tipped in a Reuters survey, in which economists39; forecasts ranged from 0.1 to 0.9.

Looking ahead, some analysts see South Korea39;s economic momentum as frail due to weakening domestic demand, high interest rates and the sluggish recovery of exports after a yearlong downturn in the semiconductor industry.

Economic growth in Korea held up better than expected in Q4 but we expect the economy to grow below trend over the next couple of quarters as export growth softens in near term while tight fiscal and monetary policy continue to curtail domestic demand, said Shivaan Tandon, Emerging Asia Economist at Capital Economics.

A breakdown of the GDP figures showed exports expanded 2.6, while imports rose 1.0, bringing net growth contribution of 0.8 percentage points, up from 0.5…