{"id":2208020,"date":"2025-01-21T08:00:58","date_gmt":"2025-01-20T23:00:58","guid":{"rendered":"https:\/\/koreapro.org\/?p=2208020"},"modified":"2025-01-20T16:02:36","modified_gmt":"2025-01-20T07:02:36","slug":"bank-of-korea-warns-of-growth-slowdown-as-global-trade-pressures-intensify","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/01\/bank-of-korea-warns-of-growth-slowdown-as-global-trade-pressures-intensify\/","title":{"rendered":"Bank of Korea warns of growth slowdown as global trade pressures intensify"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Bank of Korea (BOK) has adjusted its 2025 growth forecast <\/span><a href=\"https:\/\/www.bok.or.kr\/portal\/bbs\/B0000347\/view.do?nttId=10089321&amp;searchCnd=1&amp;searchKwd=&amp;depth2=201106&amp;depth=201106&amp;pageUnit=10&amp;pageIndex=1&amp;programType=newsData&amp;menuNo=201106&amp;oldMenuNo=201106\"><span style=\"font-weight: 400;\">downward<\/span><\/a><span style=\"font-weight: 400;\"> to 1.6 to 1.7% on Monday, citing lingering domestic political instability and heightened external risks. This marks a significant reduction from its earlier projection of <\/span><a href=\"https:\/\/koreapro.org\/2024\/11\/economic-slowdown-drives-bank-of-korea-to-surprise-second-rate-cut\/\"><span style=\"font-weight: 400;\">1.9%<\/span><\/a><span style=\"font-weight: 400;\">. The central bank highlighted weaker consumer sentiment and sluggish investment as key contributors to the revised outlook. South Korea\u2019s Economic Sentiment Index plunged to 83.1 in Dec. 2024, its lowest since the pandemic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite strong exports in sectors like semiconductors and IT products, broader consumption and investment trends have struggled to recover. The BOK anticipates additional headwinds from the Trump administration\u2019s protectionist policies, which could disrupt South Korea\u2019s trade-dependent economy. The central bank emphasized the need for swift government action and further clarity in economic policymaking to stabilize conditions.<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The finance ministry\u2019s <\/span><a href=\"https:\/\/www.moef.go.kr\/nw\/nes\/detailNesDtaView.do?searchBbsId1=MOSFBBS_000000000028&amp;searchNttId1=MOSF_000000000072299&amp;menuNo=4010100\"><span style=\"font-weight: 400;\">announcement<\/span><\/a><span style=\"font-weight: 400;\"> of a record $248 billion (360 trillion won) export finance allocation for 2025 underlines the government\u2019s urgency in countering growing uncertainties. With enhanced support for sectors like semiconductors and expanded exchange rate risk measures, the ministry aims to mitigate external shocks and strengthen South Korea\u2019s export competitiveness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main opposition Democratic Party\u2019s (DP) <\/span><a href=\"https:\/\/theminjoo.kr\/main\/sub\/news\/view.php?sno=0&amp;brd=230&amp;post=1208988&amp;search=\"><span style=\"font-weight: 400;\">pivot to emphasizing economic issues<\/span><\/a><span style=\"font-weight: 400;\"> comes after Friday\u2019s <\/span><a href=\"https:\/\/www.gallup.co.kr\/gallupdb\/reportContent.asp?seqNo=1537\"><span style=\"font-weight: 400;\">Gallup Korea poll<\/span><\/a><span style=\"font-weight: 400;\"> showed the ruling People Power Party leading by three percentage points. DP leader Lee Jae-myung\u2019s renewed focus on livelihood recovery and calls for bipartisan action reflect mounting pressure to address public dissatisfaction with economic conditions, particularly amid <a href=\"https:\/\/koreapro.org\/2025\/01\/job-market-struggles-highlight-south-koreas-economic-vulnerabilities-in-2025\/\">slowing employment<\/a> and consumer pessimism.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trump\u2019s return to office adds further uncertainty, with his administration\u2019s potential trade and tariff policies posing significant challenges for South Korea\u2019s export-driven economy. While the BOK\u2019s projections suggest limited growth, it remains to be seen whether the South Korean economy can even meet these reduced targets, given the dual pressures of global instability and domestic political uncertainty.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/domestic-politics\/\"><span class=\"tag\">Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The Bank of Korea (BOK) has adjusted its 2025 growth forecast downward to 1.6 to 1.7% on Monday, citing lingering domestic political instability and heightened external risks. This marks a significant reduction from its earlier projection of 1.9%. The central bank highlighted weaker consumer sentiment and sluggish investment as key contributors to the revised outlook. [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2206008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,27],"class_list":["post-2208020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-domestic-politics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of Korea warns of growth slowdown as global trade pressures intensify - Korea Pro<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2025\/01\/bank-of-korea-warns-of-growth-slowdown-as-global-trade-pressures-intensify\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of Korea warns of growth slowdown as global trade pressures intensify - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"The Bank of Korea (BOK) has adjusted its 2025 growth forecast downward to 1.6 to 1.7% on Monday, citing lingering domestic political instability and heightened external risks. This marks a significant reduction from its earlier projection of 1.9%. The central bank highlighted weaker consumer sentiment and sluggish investment as key contributors to the revised outlook. 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