S. Korea’s c. bank trims ’25 economic growth forecast

South Korea’s central bank, Bank of Korea on Monday revised its 2025 economic growth projection to 1.6-1.7 per cent, down from the previous forecast of 1.9 per cent in November.

The 0.2 percentage point cut is attributed to political uncertainty following President Yoon Suk Yeol’s brief martial law attempt on December 3 and weakening domestic demand amid fragile economic sentiment.

Asia’s fourth-largest economy likely grew by 2.0 per cent or 2.1 per cent last year, lower than the previously forecasted 2.2 per cent expansion. This was also impacted by a Dec. 29 plane crash, the deadliest in South Korean history.

South Korea’s economic future will largely depend on the resolution of the current political uncertainty, government stimulus efforts, and the economic strategies of the incoming US administration.

Attribution: Reuters

Subediting: Y.Yasser