South Korea’s economy logged a relatively decent growth last year despite sluggish exports and lukewarm domestic demand amid tightening monetary policies around the globe, central bank data showed Thursday.

The country’s real gross domestic product — a key measure of economic growth — increased 1.4 percent last year, in line with the central bank’s earlier estimate, according to preliminary data from the Bank of Korea (BOK).

But last year’s economic expansion marked a slowdown from a 2.6 percent advance in 2022 and 4.3 percent growth in 2021.

In the final quarter of last year, Asia’s fourth-largest economy advanced 0.6 percent on-quarter.

Asia’s fourth-largest economy has been on a recovery pace since it contracted 0.3 percent in the fourth quarter of 2022 in the face of aggressive monetary tightening in major countries, escalating geopolitical tensions, rising household debt and a slowdown in China’s economy, the country’s top trading partner.

Earlier this month, the central bank held its key interes
t rate steady at 3.5 percent for the eighth straight time as it weighs a slowdown in growth amid moderating inflation.

The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.

Source: Yonhap News Agency