Illustration depicting South Korea's 1% GDP growth in 2025 driven by exports amid construction weakness and Q4 contraction.
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South Korea's economy grows 1 percent in 2025

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South Korea's gross domestic product grew 1 percent in 2025 from the previous year, according to Bank of Korea data, but the fourth quarter saw an unexpected 0.3 percent contraction. Strong exports drove the annual figure despite weakness in construction. This marks half the 2 percent expansion of 2024.

China's manufacturing powerhouse Guangdong has lowered its 2026 GDP growth target to 4.5%-5% after missing the previous year's goal. Governor Meng Fanli announced this during the opening of the Guangdong provincial people’s congress. The adjustment signals challenges from the property sector drag and global headwinds.

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The Korea Chamber of Commerce and Industry (KCCI) argued that excessive regulations on large companies may have reduced South Korea's gross domestic product (GDP) by up to 111 trillion won ($75.2 billion) in 2025, urging the government to ease burdens on expanding firms. The report highlights a 'growth penalty' of added taxes and regulations that hampers Asia's fourth-largest economy. It notes that companies are deliberately limiting growth to avoid thresholds.

The Central Bank reported a 2.2% growth in October's Imacec, driven by commerce and services. While the year's accumulated expansion reaches 2.5%, experts warn that December's high comparison base could complicate the government's 2.5% GDP projection for 2025. If achieved, the average under Gabriel Boric's administration would surpass Michelle Bachelet's.

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Egypt's economy expanded by 5.3% in the first quarter of the 2025/2026 fiscal year, marking the highest growth in over three years. This surge stems from structural reforms boosting manufacturing, tourism, and telecommunications sectors. The ministry forecasts at least 5% growth for the full year.

Statistics Indonesia (BPS) reported a 5.04 percent year-on-year economic growth for the third quarter of 2025. This figure exceeds the 4.95 percent from the same period last year and surpasses China and Singapore. Household consumption continued as a key driver amid global uncertainties.

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Insee reported a 0.5% rise in French GDP for the third quarter of 2025, exceeding forecasts. This puts France on track for annual growth above 0.7%. Economy Minister Roland Lescure called the performance 'remarkable' amid political uncertainties.

 

 

 

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