South Korea's economic growth forecast for 2025 has been downgraded due to escalating global trade tensions fueled by US President Donald Trump's protectionist policies.
South Korea n economists have downgraded their growth forecast for the country's economy in 2025, citing the escalating global trade tensions triggered by US President Donald Trump 's aggressive protectionist policies. The Korea Development Institute (KDI), a leading economic think tank, now projects South Korea 's economy to expand by 1.6% in 2025, a reduction of 0.4 percentage points from its previous estimate issued in November.
KDI economists emphasize that the deterioration in the global trade environment following Trump's inauguration has been a key factor in this downward revision. This, coupled with domestic challenges such as weak consumer spending and a sluggish job market, has contributed to the more pessimistic outlook. The slowdown in exports, affecting most key industries except semiconductors, further reinforces the concerns.KDI warns that the economic outlook could deteriorate further if Trump intensifies his trade actions or if South Korea's political instability persists. The recent escalation of tariffs on steel and aluminum, along with the potential threat of tariffs on cars, semiconductors, and pharmaceuticals, presents significant risks to the South Korean economy. The KDI stresses that the uncertainty surrounding Trump's trade policies has become a major obstacle to economic planning and investment, creating a volatile environment for businesses
South Korea Economy Donald Trump Tariffs Trade War Growth Forecast Protectionism
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