Seoul: Extreme heat waves and other weather conditions this year have significantly impacted the annual private consumption growth rate, reducing it by approximately 0.09 percentage points, as reported by the central bank on Monday. A cold wave in the first quarter and a summer heat wave were identified as key factors, lowering the growth by 0.03 and 0.15 percentage points, respectively.

According to Yonhap News Agency, the Bank of Korea (BOK) released a report detailing these findings, highlighting that below-average rainfall this year unexpectedly contributed to an increase in consumption growth by 0.09 percentage points. The report also revealed a notable decline in daily card spending, which fell by 7 percent on days of extreme heat, where temperatures exceeded 35°C, and by 3 percent on cold-wave days when temperatures were at or below zero.

The report further indicated a 6 percent decrease in daily card spending during heavy rainfall, with daily precipitation reaching or exceeding 20 millimeters. The analysis was conducted using data on card spending and weather conditions from the first quarter of 2023 through the second quarter of 2025 across 17 provinces.

The BOK report concluded by suggesting that unusual weather, along with changes in working hours and shifts in work patterns, is likely to maintain volatility in consumption patterns.