SEOUL, Jan. 22 (Xinhua) -- South Korea's real gross domestic product (GDP) growth halved last year compared with the previous year due mainly to the sluggish construction investment, central bank data showed Thursday.

The seasonally-adjusted real GDP, adjusted for inflation, grew 1.0 percent in 2025 after expanding 2.0 percent in the previous year, according to the Bank of Korea (BOK).

It met the BOK's forecast last November but fell short of the estimated potential growth rate of 1.8 percent.

The slower growth was attributable to the slowdown in construction investment, which tumbled 9.9 percent in 2025 after sliding 3.3 percent in 2024.

Export, which accounts for about half of the export-driven economy, gained 4.1 percent last year, while import rose 3.8 percent.

Private consumption, another growth engine of the Asian economy, expanded 1.3 percent last year, higher than an increase of 1.1 percent in the prior year.

Fiscal spending swelled 2.8 percent, while facility investment mounted 2.0 percent.

The real GDP contracted 0.3 percent in the October-December quarter of 2025 compared with the previous quarter, marking the first contraction in three quarters.

The figure reduced 0.2 percent in the first quarter before growing 0.7 percent in the second quarter and 1.3 percent in the third quarter last year.

Consumer spending rose 0.3 percent in the fourth quarter on a quarterly basis, lower than an increase of 1.3 percent in the previous quarter.

Fiscal spending added 0.6 percent, but construction investment dipped 3.9 percent in the fourth quarter after rising 0.6 percent in the third quarter.

Facility investment shrank 1.8 percent in the fourth quarter from three months earlier, while inventory mounted 0.3 precent.

Outbound shipment slipped 2.1 percent on weaker demand for cars, machinery and equipment, and import declined 1.7 percent on lower demand for natural gas and cars.

The BOK left its benchmark interest rate unchanged at 2.50 percent after reducing it by 25 basis points in February and May of 2025 and in October and November of 2024.

By industry, the seasonally-adjusted production among manufacturers diminished 1.5 percent in the fourth quarter on a quarterly basis after going up 1.5 percent in the previous quarter.

Output in the service industry gained 0.6 percent owing to an upswing in the finance and insurance, the real estate and the healthcare and social welfare sectors.

Production in the construction industry dropped 5.0 percent in the fourth quarter from three months earlier, turning downward from a growth of 0.7 percent in the previous quarter.

Output in the agriculture, forestry and fishery industry mounted 4.6 percent, but production in the electricity, natural gas and water supply plunged 9.2 percent.

Real gross domestic income went up 0.8 percent in the October-December quarter, lower than an expansion of 1.1 percent in the July-September quarter.