AMRO projects S. Korean economy to grow 1.6% in 2025 amid US tariff woes
An economic surveillance organization in Asia on Friday forecast the South Korean economy to grow 1.6 percent this year amid heightened global trade uncertainties sparked by US tariffs.
The ASEAN+3 Macroeconomic Research Office made the assessment in a report drawn up after an annual consultative meeting with the South Korean government and relevant agencies in November, according to the Ministry of Economy and Finance.
Despite a rebound in domestic consumption, South Korea's economy is expected to expand 1.6 percent in 2025, down 0.4 percentage point from 2 percent growth last year, mainly due to impacts from the Donald Trump administration's tariff scheme, the organization said.
AMRO cited a slowdown in major economies, such as the United States, the European Union and China; the Trump administration's plan to sharply increase tariffs; and political uncertainties in the country as major downside risks.
Inflation will likely come to the 1.9 percent level, down from 2.3 percent last year, with stabilizing food prices and a decline in global energy prices, AMRO said.
Inflation, however, may increase at a higher rate should geopolitical tensions in the Middle East and Ukraine elevate and global energy and food prices go up due to climate change, it noted. (Yonhap)
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