Bank of Korea downgrades 2025 GDP forecast \ stacker news ~econ

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Bank of Korea downgrades 2025 GDP forecast www.reuters.com/markets/asia/bank-korea-downgrades-2025-gdp-forecast-2025-01-20/

575 sats \ 8 comments \ @south_korea_ln 21 Jan econ

South Korea's central bank said on Monday its economic growth projection for 2025 was estimated between 1.6% and 1.7%, lower than the 1.9% it forecast in November.

The cut of around 0.2 percentage points is due to political uncertainty triggered by President Yoon Suk Yeol's short-lived Dec. 3 martial law attempt and weakening domestic demand amid frail economic sentiment, the Bank of Korea said in a blog post.

Sentiment is definitely not good. I went to Itaewon this weekend, there was a feeling of gloominess with many places closing shop. Then again, people travel abroad as never before, so not everyone is suffering.

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0 sats \ 2 replies \ @SimpleStacker 21 Jan

Hmm, i wouldn't think that the recent political turmoil would reflect so quickly on people closing shop in Itaewon. I'd guess there's something else going on as well.

0 sats \ 1 reply \ @south_korea_ln OP 21 Jan

Yeah, that's sloppy journalism.

The turmoil is a symptom of deeper problems.

I really think i should write a long form post about my perspective on Korean society and how it explains many a problem people suffer from.

0 sats \ 0 replies \ @SimpleStacker 21 Jan

Please do. My sats are ready

0 sats \ 4 replies \ @Undisciplined 21 Jan

Are there big spillovers from China and Japan? Both economies have been fairly volatile lately.

42 sats \ 3 replies \ @south_korea_ln OP 21 Jan

I think there is a fear that with US tariff promised by Trump on China, China will start dumping their stuff even more in Korea.

The Chinese housing crisis hasn't spilled over much yet. It's s bit rough, smaller construction companies closed shop, but i don't feel it is China's doing. And people are back to speculating on the housing market. Have you heard of the Jeonse system, that would deserve a post in itself.

Biggest issue is the currency volatility I'd say. But that's just US offloading their inflation to the rest of the world.

I'm on my phone, too lazy to structure my thoughts.

0 sats \ 2 replies \ @Undisciplined 21 Jan

I'd love to read a post about Jeonse. I just looked it up and it's pretty interesting.

22 sats \ 1 reply \ @south_korea_ln OP 21 Jan

I'll do that in coming days. I'm slacking off on SN from working on some looming deadlines.

0 sats \ 0 replies \ @Undisciplined 21 Jan

Looking forward to it.