Finance minister Choi Sang-mok says the nation’s economy is highly likely to post growth in the one percent range next year. 

Choi made the projection Monday during a meeting with reporters, saying the economy is most likely to witness growth slightly below the potential growth rate of two percent as the nation will inevitably face an economic downturn due to large downside risks. 

Choi said consumer sentiment is contracting due to recent political situations at a time when domestic demand is more sluggish than initially expected. 

He added that growth in exports is likely to slow down due to the semiconductor cycle, and that there are uncertainties surrounding trade ahead of the launch of the second Donald Trump administration. 

Choi was quick to add that the latest economic indices do not indicate a crisis, stressing that it is imperative to address the hardships faced by people and dispel business uncertainties. 

In its outlook released in July, the government had projected that the nation’s economy would post growth of two-point-two percent in 2025.