JP Morgan lowers South Korea's 2025 economic growth forecast to 0.7%

The United States' increase in tariffs on South Korea has prompted JPMorgan Chase to lower its growth forecast for South Korea twice within a week. Last week, JPMorgan economist Seok Gil Park revised the GDP growth expectation for South Korea in 2025 from 1.2% to 0.9%, and it has now been lowered to 0.7%. Park anticipates that, considering the increase in U.S. tariffs and the potential recession in the U.S. economy in the second half of the year, South Korea's actual exports will experience quarter-on-quarter contraction for the remainder of 2025. He expects the Bank of Korea to significantly ease monetary policy, and in addition to fiscal stimulus measures, it may cut interest rates five more times starting in April to support the economy