Citi: South Korea's GDP growth may slow slightly in the fourth quarter, paving the way for a rate cut next month

Citigroup analysts said that South Korea's GDP growth in the fourth quarter of 2024 may slow down slightly, which could pave the way for the South Korean central bank to cut interest rates again next month. Citigroup expects that after the third quarter GDP increased by 0.1% quarter-on-quarter and 1.5% year-on-year, the fourth quarter GDP is expected to increase by 0.1% quarter-on-quarter and 1.3% year-on-year. Citigroup pointed out that the fourth quarter GDP data to be released next week may show weak consumer, service, and construction data, but strong export and manufacturing data. Citigroup expects that after the dovish pause in rate cuts in January, the South Korean central bank will cut interest rates by 25 basis points again in February. (Jinshi)