Morgan Stanley upgrades S. Korea’s growth outlook for 2025 to 1.1%

Morgan Stanley has raised South Korea's growth forecast for this year to one-point-one percent.

That's a zero-point-one percentage point increase from its previous forecast in April.

A report released on Thursday explained that the upward adjustment was made in response to the recent gradual de-escalation of tariff tensions between the U.S. and China, and the U.S. announcement of a 90-day reciprocal tariff suspension.

The report also anticipates that fiscal policy will emerge as a new growth driver after the snap presidential election next month, predicting a second supplementary budget in the second half of this year.