SEOUL, May 14 (Xinhua) -- South Korea's state-run think tank on Wednesday slashed this year's growth outlook for the Asian economy by 0.8 percentage points.
Real gross domestic product (GDP), adjusted for inflation, was forecast to rise 0.8 percent in 2025, according to the Korea Development Institute (KDI).
It was down from an expansion of 1.6 percent estimated three months earlier. The real GDP was expected to increase 1.6 percent in 2026.
The downward revision was attributed to the worsened trade condition, triggered by the U.S. tariffs imposition, and the sluggish construction industry.
The KDI outlook was lower than a growth of 1.0 percent estimated last month by the International Monetary Fund.
The seasonally-adjusted real GDP contracted 0.2 percent in the first quarter from three months earlier, marking the first reduction in three quarters.
In terms of volume, export for goods was projected to decline 0.4 percent this year, while private consumption was predicted to climb 1.1 percent.
Construction investment was expected to drop 4.2 percent in 2025 after retreating 3.0 percent in 2024.
Outlook for the consumer price inflation was set at 1.7 percent for 2025 and 1.8 percent for 2026, below the central bank's mid-term inflation target of 2 percent.
The number of jobs was expected to grow 90,000 this year and 70,000 next year. ■
