South Korea cuts 2025 growth forecast to 1.6-1.7% due to political instability and martial law.

South Korea's central bank has lowered its 2025 growth forecast due to political instability after President Yoon Suk Yeol declared martial law. The bank now projects 2024's fourth-quarter growth at 2.0-2.1%, down from 2.2%, and 2025's growth at 1.6-1.7%, down from 1.9%. Political uncertainty is expected to reduce this year's growth by about 0.2 percentage points, mainly impacting domestic consumption.

2 months ago
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