South Korean think tank halves 2025 growth forecast to 0.8%

As South Korea's presidential race intensifies amid a revised growth outlook, a state-funded think tank has projected slower expansion next year due to U.S. President Trump’s tariff policies and economic challenges stemming from a recent political crisis. The Korea Development Institute now forecasts 0.8% annual growth in 2025, down from its previous estimate of 1.6%, reflecting the pressures facing the nation as voters prepare to elect a new leader amid an ongoing trade conflict and internal instability.