According to Jinshi Data, Citigroup published a report saying that South Korea's economic sentiment deteriorated more than expected this month, and slightly lowered its GDP forecast for South Korea this year and next year by 0.1 percentage point to 2.1% and 1.5% respectively.
Citigroup lowered its GDP growth forecast for South Korea in the fourth quarter of this year by 0.1 percentage point to a quarterly increase of 0.3%, and raised its GDP growth forecast for the first quarter of next year by 0.1 percentage point to a quarterly increase of 0.6%.
Citigroup expects South Korea to adopt expansionary policies, including the Bank of Korea's interest rate cut to 2.75% in mid-January and the government's proposed additional budget of 30 trillion won. It is expected that the Bank of Korea will cut interest rates by 25BP each in January, April, July and October next year, with the final interest rate at 2%.