Anchor: Some of the world’s largest investment banks have nudged up their 2025 growth forecasts for the South Korean economy. Experts attribute the optimism to Seoul’s extra budget package and anticipation for a reduced export burden from the Sino-U.S. trade conflict.
Choi You Sun reports.

Report: Several global investment banks(IBs) revised up their growth outlook for the South Korean economy this year by one-tenth of a percentage point.

According to the Korea Center for International Finance on Friday, in June global IBs predicted that the country’s real gross domestic product(GDP) will expand an average of zero-point-nine percent, up from the May prediction of zero-point-eight percent.

Barclays made an upward adjustment from one percent to one-point-one percent, while the Bank of America Merrill Lynch figure increased from zero-point-eight to one percent, and the UBS estimate rose from one percent to one-point-two percent.

Still, some kept their outlook figures unchanged: Goldman Sachs at one-point-one percent, Nomura at one percent, HSBC at zero-point-seven percent, Citi at zero-point-six percent and J.P. Morgan at zero-point-five percent.

It is the first time since February 2024 that international IBs have adjusted their predictions for South Korea in a positive direction.

The banks attributed the results to policy stability under the new government of President Lee Jae Myung, which is actively pursuing an expansionary fiscal policy, and anticipation for the revitalization of exports amid the easing of the Sino-U.S. trade war.

The economic stimulus effect of Seoul’s two extra budgets was also taken into consideration, with Bank of Korea(BOK) Gov. Rhee Chang-yong saying earlier this week that the budget package should raise this year’s growth rate by around a fifth of a percentage point.

The IBs, meanwhile, said a possible slowdown in the BOK's rate cut in line with Seoul's soaring housing prices could strain the nation's growth.
Choi You Sun, KBS World Radio News.