The Korea Development Institute (KDI) has revised South Korea's 2025 economic growth forecast downward to 1.6%, a 0.4 percentage point decrease from previous estimates. This adjustment is primarily due to the negative impact of increased U.S. tariffs under President Donald Trump, which have heightened trade uncertainties, especially in key export sectors like steel, aluminum, and semiconductors. Domestic factors, including slowing consumer spending and political instability following the impeachment of President Yoon Suk Yeol, have further contributed to the economic downturn. The political crisis has weakened domestic demand and increased external risks, prompting considerations for negotiations and international collaboration to mitigate these challenges.
1 comment:
This is really interesting. I wonder how true the forecast will be and what this will mean in terms of international powers facing the blows of tariffs.
Post a Comment