Citi: South Korea's GDP growth rate may slow down in 2025, and the central bank may cut interest rates three more times

ChainCatcher news, Citigroup analysts Jin-Wook Kim and Jiuk Choi wrote in a report that due to sluggish economic activity in the first quarter and the new tariffs effective in the U.S. in April, South Korea's GDP growth this year may be weaker than expected.

Analysts said that the delay in fiscal stimulus measures could also weigh on the country's GDP growth. They lowered South Korea's GDP growth forecast for 2025 from 1.2% to 1.0%. The government is likely to prepare an additional budget of 20 trillion won in the third quarter after compiling an additional budget of 10 trillion won in the second quarter to support the economy. They added that the central bank may cut interest rates three more times this year—possibly in May, August, and November.