IMF's Stark Revision for South Korea

The International Monetary Fund (IMF) has made a significant adjustment to its 2025 growth forecast for South Korea, reducing it by a full percentage point from 2.0% to just 1.0%. This marks the most severe downgrade among the world's major economies, signaling deep concerns over the country's economic prospects.

Global Growth Outlook Dims

In its latest World Economic Outlook, the IMF also revised its global growth forecast downward by 0.5 percentage points to 2.8%. The adjustments reflect growing apprehensions about the impact of U.S.-China tariff tensions, sluggish domestic demand, and other external trade challenges.

Comparative Impact on Major Economies

South Korea's growth forecast was cut the most sharply, followed by the United States, China, and Japan. The revision underscores the disproportionate effect of global trade conflicts on South Korea, which had already been projected to grow at a slower pace than its peers.

Risks and Recommendations

The IMF highlighted several risks to global economic stability, including policy uncertainty, high interest rates, and financial market volatility. It urged countries to adopt prudent monetary policies and sound fiscal management to navigate these challenges.