Citigroup analysts Jin-Wook Kim and Jiuk Choi wrote in a report that due to the sluggish economic activity in the first quarter and the new tariffs implemented in the United States in April, South Korea's GDP growth rate this year may be weaker than expected. Analysts say that the delay in fiscal stimulus measures may also drag down the country's GDP growth. They have lowered their GDP growth expectations for South Korea in 2025 from 1.2% to 1.0%. The government may prepare an additional budget of 100 trillion Korean won in the second quarter and an additional budget of 200 trillion Korean won in the third quarter to support the economy. They added that the central bank may cut interest rates three more times this year - possibly in May, August, and November.
