{"id":2208154,"date":"2025-01-30T08:00:23","date_gmt":"2025-01-29T23:00:23","guid":{"rendered":"https:\/\/koreapro.org\/?p=2208154"},"modified":"2025-01-29T15:02:39","modified_gmt":"2025-01-29T06:02:39","slug":"morgan-stanley-slashes-south-koreas-2025-growth-outlook-to-1-5","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/01\/morgan-stanley-slashes-south-koreas-2025-growth-outlook-to-1-5\/","title":{"rendered":"Morgan Stanley slashes South Korea\u2019s 2025 growth outlook to 1.5%"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Morgan Stanley <\/span><a href=\"https:\/\/www.yna.co.kr\/view\/AKR20250124156700008\"><span style=\"font-weight: 400;\">reportedly expects<\/span><\/a><span style=\"font-weight: 400;\"> South Korea\u2019s economy to grow just 1.5% this year, citing weak consumer spending, slowing exports and external headwinds. The global investment bank noted that despite the Bank of Korea\u2019s (BOK) <\/span><a href=\"https:\/\/koreapro.org\/2024\/11\/economic-slowdown-drives-bank-of-korea-to-surprise-second-rate-cut\/\"><span style=\"font-weight: 400;\">two rate cuts<\/span><\/a><span style=\"font-weight: 400;\"> in late 2024, consumption recovery could take three to four more quarters due to soft wage growth and labor market weakness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The investment bank suggested a $13.8-billion (20-trillion-won) supplementary budget could boost GDP growth by 0.2 percentage points, but it remains skeptical about a quick turnaround. Notably, BOK Governor Rhee Chang-yong made <\/span><a href=\"https:\/\/koreapro.org\/2025\/01\/economic-recovery-at-stake-as-south-koreas-rival-parties-debate-fiscal-measures\/\"><span style=\"font-weight: 400;\">similar calls<\/span><\/a><span style=\"font-weight: 400;\"> for a supplementary budget on Jan. 16. Morgan Stanley\u2019s projection is lower than the BOK\u2019s revised <\/span><a href=\"https:\/\/koreapro.org\/2025\/01\/bank-of-korea-warns-of-growth-slowdown-as-global-trade-pressures-intensify\/\"><span style=\"font-weight: 400;\">1.6 to 1.7% estimate<\/span><\/a><span style=\"font-weight: 400;\">, which factors in political uncertainty and weaker-than-expected Q4 2024 growth.<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Morgan Stanley\u2019s more pessimistic outlook highlights the growing gap between private-sector and official government forecasts, signaling deepening concerns over South Korea\u2019s economic trajectory. The BOK\u2019s downward revision already reflected political and consumer sentiment risks, but Morgan Stanley sees even slower recovery in domestic demand and a sharper impact from external risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With South Korea\u2019s economic uncertainty mounting, the ruling People Power Party and the main opposition Democratic Party may temporarily set aside their standoff over President Yoon Suk-yeol\u2019s impeachment and arrest to fast-track stimulus discussions after the Lunar New Year holidays. However, a potential court ruling to release Yoon from jail pending his Constitutional Court trial could prevent bipartisan cooperation.<\/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>Morgan Stanley reportedly expects South Korea\u2019s economy to grow just 1.5% this year, citing weak consumer spending, slowing exports and external headwinds. The global investment bank noted that despite the Bank of Korea\u2019s (BOK) two rate cuts in late 2024, consumption recovery could take three to four more quarters due to soft wage growth and [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2206740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,27],"class_list":["post-2208154","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>Morgan Stanley slashes South Korea\u2019s 2025 growth outlook to 1.5% - 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\/morgan-stanley-slashes-south-koreas-2025-growth-outlook-to-1-5\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Morgan Stanley slashes South Korea\u2019s 2025 growth outlook to 1.5% - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"Morgan Stanley reportedly expects South Korea\u2019s economy to grow just 1.5% this year, citing weak consumer spending, slowing exports and external headwinds. 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