Central Banks
BOK Cuts Growth View on Political Instability, Trump Impact
- Bank sees economy expanding between 1.6% and 1.7% in 2025
- Forecast update between meetings shows concern over economy
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The Bank of Korea cut its growth forecast for this year as the political turmoil triggered by President Yoon Suk Yeol’s short-lived martial law declaration continues to ripple through the economy alongside concern over the potential impact of Donald Trump’s policies on trade.
The central bank now sees the economy expanding between 1.6% and 1.7% in 2025, down from a November projection of 1.9%, it said in a statement on Monday. That’s also below a 1.8% projection by the finance ministry in its updated forecasts released little more than two weeks ago.