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)
