Citi: South Korea's GDP may be affected by U.S. tariffs and domestic tightening of fiscal spending
ChainCatcher news, according to Jin10 reports, Citigroup economists Jin-Wook Kim and Jiuk Choi stated that South Korea's GDP growth may be affected in the coming years by the tariffs imposed during Trump's second term as U.S. president and the tightening of domestic fiscal spending in South Korea.Citigroup has lowered its GDP growth forecasts for South Korea for 2025 and 2026 from 1.8% and 1.7% to 1.6%, respectively. Economists pointed out that the tariffs promised by Trump on Canada, Mexico, and China may impact South Korea's GDP growth through export channels. The South Korean government is likely to formulate an additional budget of 30 trillion won in the first quarter, while the Bank of Korea may further lower interest rates.