1.8% Low Growth Forecast This Year...Reviewing Economic Reinforcement, including Supplementary Provisions, in Q1

December Consumer Sentiment Index 12.3p ↓…Deepening 'domestic stagnation'
The 'downside danger' of the game is getting bigger
Government Forecasts 1.8% Growth This Year..."Expanding uncertainty"

[Anchor]
The government has forecasted our economic growth rate of 1.8% this year.

Considering the launch of the second Trump administration and the economic situation of people's livelihoods, he said he would consider additional economic reinforcement measures, including an extra budget, in the first quarter of this year if necessary.

However, there is also growing concern that the prolonged impeachment process will further reduce the growth rate.

Reporter Oh In-seok on the report.

[Reporter]
Last month, the consumer sentiment index fell by the biggest margin since the COVID-19 pandemic, and the domestic economy has taken a direct hit.

The downside risks of the economy are increasing.

The government has announced its economic policy direction this year.

This year, the Korean economy is expected to grow only 1.8% as internal and external uncertainties expand more than ever, economic difficulties continue.

[Kim Beom-seok / First Vice Minister of Strategy and Finance: Recently, the Korean economy has seen a slowdown in export growth amid a slow recovery in domestic demand, and uncertainty over future growth paths is also growing]

In particular, exports will fall sharply to 1.5% this year from 8.2% last year, while construction investment will still remain negative, the government predicted.

It is expected that the number of employed will only increase by 120,000 and private consumption will improve slightly to 1.8%.

Consumer price growth is forecast to be 1.8%.

Earlier, the Bank of Korea presented a 1.9% forecast for Korea's economic growth this year and the International Monetary Fund IMF and the Korea Development Institute KDI 2.0%, respectively, but emergency and impeachment variables were not considered.

In the first half of the year, the government decided to boost the economy of people's livelihoods by increasing fiscal execution to a record high of 67%.

In addition, the government plans to strengthen the economy by mobilizing all available resources in the public sector worth 18 trillion won from the beginning of the year.

If necessary, we will also consider additional economic reinforcement measures, including the creation of an extra budget, to accelerate economic recovery.

[Kim Beom-seok / First Vice Minister of Strategy and Finance: We will review the overall economic conditions in the first quarter and review additional measures to strengthen the economy if necessary, taking into account the pattern of the new U.S. government's policy, the flow of economic indicators, and the economic situation of people's livelihoods.]

Experts worry that growth will fall further if the impeachment process drags on this year's economic outlook and the second Trump administration pushes for trade policies such as universal tariffs.

[Seok Byung-hoon / Professor of Economics at Ewha Womans University] As political uncertainty is intensifying, the slump in domestic demand is expected to accelerate, and the response to changes in trade policy following the launch of the second Trump administration is expected to be delayed. It's likely to make the recession worse. We believe that growth may fall to the mid-1% range.

Considering the political turmoil and the future Trump risks, some even predict that growth could fall to the early 1% range this year.

This is YTN Oh In-seok.

Reporter for shooting
: Jung Chul-woo
Edit Video:Eunkyung Lee
Design: Jeong-ok