KIEP forecasts 3.0% global economic growth next year... 0.2%p↓

The Korea Institute for International Economic Policy, a state-run think tank, predicted that the global economic growth forecast for next year will be 3.0%, down 0.2 percentage points from the previous year.

In its Global Economic Outlook report for next year, KIEP predicted that the launch of a new U.S. administration, its own priority, intensifying protectionism, and the impact of China's economic growth from unfavorable internal and external factors will serve as a downside factor to the global economy.

The U.S. forecast stable growth of 2.1% next year, based on factors that increase uncertainty, or on the premise that tax cuts are quickly implemented, the policy shift and strengthening protectionism following Trump's return to power.

The euro area is expected to see a modest 1.3% annual recovery next year as Germany's growth falls short of expectations, with trade friction issues likely to be repeated as in the first Trump administration.

China has forecast a 4.1% low growth next year due to the introduction of additional tariffs and sanctions on China following Trump's return at a time when growth remains highly dependent on exports despite stimulus measures to support domestic demand.