South Korea forecasts slowest growth since 2020 amid US tariff impact

Published 22/08/2025, 06:44
South Korea forecasts slowest growth since 2020 amid US tariff impact

Investing.com -- South Korea expects its economy to expand by 0.9% in 2025, the weakest pace since the 2020 pandemic downturn, with upcoming U.S. tariffs likely to weigh on trade in the months ahead.

The projection is slightly above the Bank of Korea’s May forecast of 0.8% growth for the export-driven economy.

A joint government statement issued on Friday noted that exports held up relatively well in the first half of the year, as local manufacturers accelerated shipments before higher U.S. tariffs took effect.

That resilience may fade, however, with officials warning that exports could soften following the conclusion of a trade agreement with Washington in late July.

The economic outlook highlights the challenges facing South Korea’s economy as it navigates the impact of changing trade conditions with the United States, one of its largest trading partners.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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