ChainCatcher reported that according to Jinshi, Citigroup economists Jin-Wook Kim and Jiuk Choi said that South Korea's GDP growth in the next few years may be affected by the tariffs imposed during Trump's second term as US president and the tightening of domestic fiscal spending in South Korea.
Citi lowered its GDP growth forecast for South Korea in 2025 and 2026 from 1.8% and 1.7% to 1.6%, respectively. Economists pointed out that Trump's promised tariffs on Canada, Mexico and China may affect South Korea's GDP growth through the export channel. The South Korean government is likely to formulate an additional budget of 30 trillion won in the first quarter, while the Bank of Korea is likely to further cut interest rates.