Global investment banks raise Korea's growth outlook to 1%
Published: 06 Aug. 2025, 16:17
![A television at Seoul Station in Yongsan District, central Seoul, on July 31 shows a report that U.S. President Donald Trump's administration has agreed to impose 15 percent tariffs on Korean products, 10 percentage points lower than what was proposed, under a trade deal that does not include tariffs the other way. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/08/06/2aad04d6-959f-47e9-b4d0-df4776f0e82f.jpg)
A television at Seoul Station in Yongsan District, central Seoul, on July 31 shows a report that U.S. President Donald Trump's administration has agreed to impose 15 percent tariffs on Korean products, 10 percentage points lower than what was proposed, under a trade deal that does not include tariffs the other way. [YONHAP]
Major global investment banks have raised their outlook for Korea's 2025 economic growth, citing the recent tariff deal with the United States, a report showed Wednesday.
As of the end of July, eight major global banks, including Barclays, BoA-Merrill Lynch and Citi, projected that Asia's fourth-largest economy would expand 1 percent this year, up 0.1 percentage point from their median forecast a month earlier, according to a report by the Korea Center for International Finance.
It marked the second consecutive month of upward revisions by the foreign institutions.
Among them, Goldman Sachs and UBS offered the highest growth forecast at 1.2 percent, followed by Barclays with 1.1 percent and Nomura with 1 percent.
Goldman Sachs noted that the agreement between Seoul and Washington on the Donald Trump administration's aggressive tariff scheme has helped ease uncertainties, and Korea is not at a disadvantage compared to other countries.
Last week, Korea and the United States announced a tariff deal under which the Washington will impose a 15 percent tariff on Korean imports, down from the initially threatened 25 percent, in exchange for Korea's pledge to invest $350 billion in the United States.
In May, the Bank of Korea sharply lowered its 2025 economic growth forecast to 0.8 percent amid uncertainties stemming from the U.S. tariff policy and weak domestic demand. The central bank plans to release an updated outlook later this month.
Yonhap
with the Korea JoongAng Daily
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