The Bank of Korea (BOK) is widely expected to significantly lower its 2025 growth forecast to 1.6% due to a slower-than-expected recovery in domestic demand and a slowdown in export growth, experts said on Sunday.
According to a survey conducted by South Korea's Yonhap News Agency, seven local economic analysts predicted that the BOK would cut its current growth forecast of 1.9% when it announces its revised projections next Tuesday.
Park Gong-woo, an economist at Nomura Securities, stated, "The revision will take into account factors such as slowing private consumption, declining car exports due to U.S. tariffs, and uncertainties surrounding semiconductor exports."
Ahn Jae-kyun, an analyst at Shinhan Securities, also pointed out that the continued contraction in construction investment and weak domestic demand would be key factors behind the adjustment.
Earlier, Bank of Korea Governor Rhee Chang-yong hinted at the possibility of revising the forecast to around 1.6%.
If confirmed, this adjustment would align with the latest projections from the Korea Development Institute, which recently lowered its 2025 growth estimate to 1.6%, marking a 0.4% decline from its previous forecast released in November.
