South Korea's economy barely grew in the fourth quarter of 2024, missing market expectations, as domestic demand was hurt in part by the country's worst political crisis in decades, raising bets for more fiscal and monetary support to revive growth.

Political turmoil over impeached President Yoon Suk Yeol, who failed a martial law attempt in December, and sluggish domestic demand weighed on Asia’s fourth-largest economy.

South Korea's economy expanded 1.2% year on year in the fourth quarter, its slowest expansion since the second quarter of 2023. The 1.2% reading missed analysts' expectations of 1.4% growth. On a quarter on quarter basis,

South Korea’s economy continued to sputter last quarter, after President Yoon Suk Yeol’s short-lived declaration of martial law battered consumer confidence at a time when export growth is slowing.

The South Korean economy posted weaker-than-expected growth last year amid slowing export growth, sagging domestic demand and a political crisis, central bank data showed Thursday. The country's real gross domestic product -- a key measure of economic growth -- increased 2 percent in 2024,