The Korea Institute for International Economic Policy(KIEP) forecast that the global economy will grow by two-point-seven percent this year.

The institute released its 2025 World Economic Outlook report Tuesday and announced that this year’s global economic growth rate is expected to be down half a percentage point from last year.

KIEP’s latest outlook is also zero-point-three percentage point lower than its previous outlook in November 2024, reflecting tariffs, trade wars and monetary policy uncertainty.

Regarding the growth outlook, the institute explained that the global economy is expected to slow down due to the growing policy uncertainty from the United States, adding that the figure is highly likely to change depending on the results of the ongoing trade negotiations between the U.S. and its trading partners.

Among major countries, the U.S. economy is expected to grow by one-point-three percent, while China’s is forecast to grow by four-point-one percent.