Seoul, Aug 6 Major global investment banks (IBs) have raised their outlook for South Korea's 2025 economic growth, citing its recent tariff deal with the United States, a report showed on Wednesday.
As of end-July, eight major global IBs, including Barclays, BoA-Merrill Lynch and Citi, projected that Asia's fourth-largest economy would expand 1 percent this year, up 0.1 percentage point from their median forecast a month earlier, according to the report by the Korea Center for International Finance.
It marked the second consecutive month of upward revisions by the foreign institutions, reports Yonhap news agency.
Among them, Goldman Sachs and UBS offered the highest growth forecast at 1.2 percent, followed by Barclays with 1.1 percent and Nomura with 1 percent.
Goldman Sachs noted that the agreement between Seoul and Washington on U.S. President Donald Trump's administration's aggressive tariff scheme has helped ease uncertainties, and South Korea is not in a disadvantageous position compared with other countries.
Last week, South Korea and the U.S. announced a tariff deal under which the U.S. will impose a 15 percent tariff on South Korean imports, down from the initially threatened 25 percent, in exchange for South Korea's pledge to invest $350 billion in the U.S.
In May, the Bank of Korea (BOK) sharply lowered its 2025 economic growth forecast to 0.8 percent amid uncertainties stemming from the U.S. tariff policy and weak domestic demand. The central bank plans to release an updated outlook later this month.
South Korean stocks finished nearly unchanged on Wednesday as gains in tourism and retail shares offset losses in semiconductors and pharmaceuticals. The local currency slipped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 0.14 point, or 0 percent, to close at 3,198.14.
Trade volume was a little slim at 319.8 million shares worth 10.7 trillion won (US$7.7 billion), with winners outnumbering losers 644 to 236.
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