Seoul: The Bank of Korea (BOK) on Thursday sharply lowered its outlook for South Korea's economic growth this year to 0.8 percent, citing sagging consumption and slowing export growth amid uncertainties stemming from Washington's tariff measures.
According to Yonhap News Agency, the revision marks a 0.7 percentage-point drop from the central bank's previous forecast of 1.5 percent issued in February. The adjusted figure falls far below the country's estimated potential growth rate of 2 percent, which means the maximum pace at which the economy can expand without triggering inflation.
If realized, this year would mark the first time South Korea's annual growth rate dips below that threshold. Underscoring the bleak outlook and amid benign inflation, the BOK also cut its key interest rate by a quarter percentage point to 2.5 percent.