S.Korea Q4 GDP 0.1 qq vs 0.2 forecast
Domestic demand weakens; exports recover slightly
Political crisis hurts confidence, set to drag on 2025 growth
Trump39;s policies pose additional threat to economy
Cenbank to cut rates next month, bets for extra govt budget grow

SEOUL, Jan 23 Reuters South Korea39;s economy barely grew in the fourth quarter of 2024, as the country39;s worst political crisis in decades hurts already weakened domestic demand and threatens to further sap growth in a year of rising external risks under a second Trump presidency.

In December, consumer and business sentiment dampened amid political chaos, after President Yoon Suk Yeol was impeached and suspended from duties over his shortlived bid to impose martial law, followed by the impeachment of Prime Minister Han Ducksoo.

That impact saw gross domestic product GDP expand just 0.1 from a quarter earlier on a seasonally adjusted basis, the Bank of Korea39;s advanced estimates showed on Thursday.

It was weaker than increases of 0.2 forecast in a Reuters survey and 0.5 projected by the central bank less than a week before Yoon39;s Dec. 3 martial law edict.

Asia39;s fourthlargest economy has struggled through 2024, having narrowly avoided a technical recession in the third quarter when it grew 0.1 following a 0.2 contraction in the second.

Worryingly, the BOK and economists expect the political crisis to remain a dampener on growth this year too.

Economic sentiment weakened significantly on…