Global credit ratings agency Fitch Ratings has lowered its growth outlook for South Korea this year from one percent to zero-point-nine percent.

In its monthly report on Friday, Fitch projected South Korea’s gross domestic product to grow by an average of zero-point-nine percent in 2025, down from the one percent forecast in April.

The agency explained the downward revision was due to “weak” first-quarter economic data, which offset expectations of a slight recovery in global trade conditions.

However, Fitch expects the South Korean economy to expand by one-point-eight percent next year, up zero-point-four percentage points from its previous forecast, citing expectation for "looser" fiscal and monetary policies to support domestic demand.

The agency also forecast the Bank of Korea(BOK) to cut the key interest rate two more times this year to two percent, up from its previous projection of one-point-75 percent.