Major global investment banks have revised upward their outlook for South Korea’s economic growth in 2025, citing the recent tariff deal reached with the United States. The agreement, announced at the end of July, reduced proposed tariffs on Korean products to 15 percent—10 percentage points lower than initially planned—and excluded reciprocal duties, easing uncertainties for exporters. According to a report by the Korea Center for International Finance, eight leading global banks, including Barclays, Bank of America Merrill Lynch, and Citi, now project Asia’s fourth-largest economy to expand by 1 percent this year. This represents a 0.1 percentage point increase from their previous median forecast. It also marks the second consecutive month of upward revisions by foreign institutions. Goldman Sachs and UBS issued the highest growth estimates at 1.2 percent, followed by Barclays at 1.1 percent and Nomura at 1 percent. Analysts highlighted that the tariff compromise has helped stabilize expectations and reassured markets that Korea will not face a competitive disadvantage compared with other economies. The improved outlook comes despite lingering concerns about sluggish industrial output, especially in construction, and widening inequality in household asset accumulation. Still, the upgraded forecasts suggest global financial institutions view the tariff agreement as a turning point, providing Korea with a more predictable trade environment under the Trump administration’s aggressive policies. (ICE SEOUL)

Fonte notizia: KOREA JOONGANG DAILY