The Organization for Economic Cooperation and Development (OECD) has lowered this year's economic growth forecast for South Korea to 1.5%, a decrease of 0.6 percentage points.
In a quarterly economic outlook released on the 17th, the OECD adjusted its economic growth forecast for South Korea this year from 2.1% to 1.5%. The OECD provides economic forecasts for major countries twice a year (May to June and November to December), and revises its estimates through a mid-year economic outlook in March and September.
The OECD predicted in December last year that South Korea's economic growth rate would be 2.1% for this year. However, it revised this down by 0.6 percentage points in just three months. The OECD noted, "South Korea's growth momentum is expected to be maintained, but it will likely be more moderate than previously expected."
The OECD's revised forecast aligns with the 1.5% announced by the Bank of Korea last month. The International Monetary Fund forecasts 2.0%, the Korea Development Institute (KDI) predicts 1.6%, and the South Korean government expects 1.8%.
Not only South Korea but also most countries around the world have seen their economic growth forecasts downgraded. This appears to be influenced by the expansion of trade barriers and increased geopolitical uncertainties since President Trump's inauguration.
The global economic growth forecast has been reduced from 3.3% to 3.1%, while the United States has been adjusted from 2.4% to 2.2%, Japan from 1.5% to 1.1%, and the eurozone from 1.3% to 1.0%. The OECD stated, "Significant changes in trade policy may impact global economic growth and could increase inflation," adding that "inflationary pressures are persisting in many countries."