Global Economic Growth Projected to Slow Down

The Korea Institute for International Economic Policy (KIEP) has revised its global economic growth forecast for 2025 downward to 2.7%, citing the impact of global tariff wars. This marks a 0.3 percentage point decrease from the November forecast and falls below the pre-COVID average growth rate of 3.4% (2015-2019).

Weak Dollar Trend on the Horizon

KIEP highlights the potential for a weak dollar trend starting in the second half of 2025, driven by U.S. economic slowdown, possible interest rate cuts, and shifts in exchange rate policy. Despite short-term strength due to high interest rates, concerns over the dollar's credibility are growing.

Country-Specific Growth Projections

The U.S. is expected to grow by only 1.3% in 2025, with the EU and China projected at 0.8% and 4.1% growth rates, respectively. These figures reflect the ongoing challenges posed by tariff policies and trade conflicts.