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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] The Organization for Economic Cooperation and Development (OECD) has revised its projection for South Korea’s 2025 annual economic growth, lowering it from 2.2% to 2.1%. The 2024 forecast was also reduced, from 2.5% to 2.3%.
In its December Economic Outlook released on December 4, the OECD predicted that South Korea’s economy would grow by 2.1% in 2025, a 0.1 percentage point reduction from its September estimate of 2.2%. This figure remains slightly higher than forecasts by other major institutions, including the Korea Development Institute (KDI, 2.0%), the International Monetary Fund (IMF, 2.0%), and the Bank of Korea (1.9%), but matches the forecast from the Korea Institute for Industrial Economics and Trade (2.1%). The OECD also downgraded its growth projection for 2024 from 2.5% to 2.3%.
The OECD did not provide detailed reasons for its lowered forecast for South Korea. However, it cited global downside risks, including geopolitical uncertainties such as the Middle East conflicts and the Russia-Ukraine war, as well as trade policy uncertainties stemming from protectionist measures in major economies. These factors raise concerns about potential external pressures on South Korea’s economy, including the possible impact of a new U.S. administration.
Globally, the OECD forecasted economic growth rates of 3.2% for 2024 and 3.3% for 2025.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
