News

Goldman Sachs slashes U.S. economic growth projection to 1.7% in 2025

2025/03/11 17:00

And against that backdrop. Goldman Sachs has slashed its economic growth forecast for the U.S. to 1-point-7 percent this year from an earlier outlook of 2-point-4 percent. The downward revision has been linked to rampant concerns that the Trump administration's tariff campaign would weaken the U.S. economy. Just last quarter the American economy grew 2-point-3 percent tangibly slower than the 3-point-1 percent growth posted in the third quarter of 2024.

Wall Street's big tech stocks plummet amid U.S. recession fears following Trump interview

2025/03/11 17:00

Wall Street tumbled on Monday as investors responded sharply to concerns about a possible recession following remarks by U.S. President Donald Trump to Fox News on Sunday. Our correspondent Moon Hye-ryeon reports. Wall Street saw an ocean of red as investors began selling their shares as soon as financial markets opened Monday amid heightened fears of a U.S. recession. The benchmark S&P 500 shed 2-point-7 percent, while the tech-heavy Nasdaq showed its biggest drop in more than two years as it slumped by 4 percent. Big tech stocks including, Apple and Microsoft, both members of the so-called "Magnificent 7," were at the center of the selling. Tesla plummeted by more than 15 percent, while chip giant Nvidia fell by more than five percent. Outside of stocks, bitcoin also slipped below the 80-thousand dollar mark – returning to levels before Trump's inauguration. Comments made by U.S. President Donald Trump in an interview with Fox News on Sunday, when asked about whether he expects a recession this year, stoked market concerns. "There is a period of transition because what we're doing is very big, we're bringing wealth back to America. That's a big thing. And there are always periods of – it takes a little time." Experts say that the risk of recession is something that Washington is viewing as a necessary evil for the greater good and they say that is reflected in Trump's blasé response to recession fears. "These are things that they're willing to, they're willing to accept for that longer term, more self-reliant, stronger position for the U.S." And this was supported by the White House on Monday, as its economic adviser Kevin Hassett pushed back on talks of a recession while calling a potential contraction a "very temporary phenomenon." He backed Trump's tariffs on Canada, Mexico, and China – claiming the measures would bring jobs and manufacturing back to the U.S. This comes amid heightened uncertainty around the Trump administration's on-again off-again tariff policies, with levies on Mexico and Canada pushed back yet again to April 2nd for goods under the free trade agreement between the U.S. and the two neighboring countries. With the U.S. set to impose another wave of tariffs on steel and aluminum starting Wednesday, eyes are on how markets will respond. Moon Hye-ryeon, Arirang News.

March exports up 2.9% y/y on strong ship and auto sales

2025/03/11 17:00

Findings for the first 10 days of March show an uptick in exports driven by cars and ships. According to the Korea Customs Service exports amounted to 13-point-9 billion U.S. dollars during this period UP 2-point-9 percent on year. By region Korean exports to the U.S. market rose 5-point-5 percent while those to the EU jumped 6-point-8 percent. By product semiconductors saw their share in total exports shrink slightly.

Goldman Sachs slashes U.S. economic growth projection to 1.7% in 2025

2025/03/11 10:00

And as stocks plummet, major investment bank Goldman Sachs slashed its economic growth forecast for the U.S. On Monday, CNBC reported that the firm adjusted its 2-point-4 percent growth forecast for gross domestic product to 1-point-7 percent. Goldman's chief economist said the reason behind this significant downgrade was fears that the new administration's tariff policies would prompt "economic weakness", as the outlook regarding tariffs becomes more "adverse." Recent figures have seen economic growth slowing in the U.S. with the economy expanding at 2-point-3 percent in the fourth quarter of last year, compared to a 3-point-1 percent growth in the previous quarter.

S. Korea's inflation holds at 2.0% as fuel prices rise, fresh produce costs dropped in February

2025/03/06 20:00

Korea's inflation rose moderately in February, gaining two-percent from a year ago, but oil costs were still high. Moon Hye-ryeon has the details. Consumer price hikes in South Korea showed signs of a gradual slowdown, but inflation continues to hover in the two percent range. Data from Statistics Korea on Thursday shows that the country's consumer price index – a key gauge of inflation – rose two percent in February year-on-year. This is a slight decline compared to the two-point-two percent growth seen in January, following three consecutive months of rising inflation figures. A surge in oil prices was a key factor in continued consumer price growth. Last month, petroleum product prices jumped by six-point-three percent year-on-year, marking the second consecutive month of price hikes of more than five percent. This is the first time since 2022 that fuel prices have recorded such sustained increases. Gasoline prices in particular spiked by more than seven percent. "The 6.3 percent increase is mainly due to factors like exchange rates and smaller cuts in fuel taxes. Compared to last February, global oil prices haven't changed much, but these domestic factors have driven up fuel prices." The government lowered its fuel tax cuts back in November last year – reducing the tax cut rate for gasoline from 20 percent to 15 percent, and 30 percent to 23 percent for diesel. And following the inauguration of U.S. President Donald Trump towards the end of January, the U.S. dollar has seen jumps alongside his new tariff policies. Reflecting the burden of higher fuel costs, the cost of living index rose by two-point-six percent last month with the added weight of processed food prices shooting up. The index measures 140 items commonly bought by consumers, and this increase is the sharpest seen since July last year. However, prices of fresh produce fell by one-point-four percent – recording the first year-on-year drop since March 2022. In particular, the cost of fresh fruit fell by more than five percent, which the agency attributed to the base effect of high prices last year. During a review of price trends on the same day, the Bank of Korea noted that there is significant uncertainty in the inflation outlook due to geopolitical tensions, trade conflicts among major economies, exchange rate fluctuations, and domestic demand trends. Moon Hye-ryeon, Arirang News.

S. Korea's inflation holds at 2.0% as fuel prices rise, fresh produce costs dropped in February

2025/03/06 17:00

Korea's inflation rose moderately in February gaining two percent on year slower than the 2-point-2 percent posted in January. Our correspondent Moon Hye-ryeon has details. Consumer price hikes in South Korea showed signs of a gradual slowdown, but inflation continues to hover in the two percent range. Data from Statistics Korea on Thursday shows that the country's consumer price index – a key gauge of inflation – rose two percent in February year-on-year. This is a slight decline compared to the two-point-two percent growth seen in January, following three consecutive months of rising inflation figures. A surge in oil prices was a key factor in continued consumer price growth. Last month, petroleum product prices jumped by six-point-three percent year-on-year, marking the second consecutive month of price hikes of more than five percent. This is the first time since 2022 that fuel prices have recorded such sustained increases. Gasoline prices in particular spiked by more than seven percent. "The 6.3 percent increase is mainly due to factors like exchange rates and smaller cuts in fuel taxes. Compared to last February, global oil prices haven't changed much, but these domestic factors have driven up fuel prices." The government lowered its fuel tax cuts back in November last year – reducing the tax cut rate for gasoline from 20 percent to 15 percent, and 30 percent to 23 percent for diesel. And following the inauguration of U.S. President Donald Trump towards the end of January, the U.S. dollar has seen jumps alongside his new tariff policies. Reflecting the burden of higher fuel costs, the cost of living index rose by two-point-six percent last month --with the added weight of processed food prices shooting up. The index measures 140 items commonly bought by consumers, and this increase is the sharpest seen since July last year. However, prices of fresh produce fell by one-point-four percent – recording the first year-on-year drop since March 2022. In particular, the cost of fresh fruit fell by more than five percent, which the agency attributed to the base effect of high prices last year. During a review of price trends on the same day, the Bank of Korea noted that there is significant uncertainty in the inflation outlook due to geopolitical tensions, trade conflicts among major economies, exchange rate fluctuations, and domestic demand trends. Moon Hye-ryeon, Arirang News.

Foreign exchange reserves fall below US$ 410 billion, lowest in nearly 5 years

2025/03/06 17:00

Korea's foreign exchange reserves are down to an almost five-year low. According to the Bank of Korea on this Thursday the reserves lost 1-point-8 billion U.S. dollars on month in February amounting to slightly below 4-hundred-10 billion U.S. dollars. Bank officials are linking the latest drop in reserves to their increased currency swap with the National Pension Service as part of efforts to ease the heightened volatility in the foreign exchange market. Meanwhile Korea stands as the world's ninth-largest holder of foreign reserves as of late January.

K-food exports see big growth over past ten years

2025/03/06 10:00

Exports of Korean food products, especially ramyeon and ready-made foods, have increased significantly over the past ten years. According to the Korea Trade Statistics Promotion Institute's report on K-food export trends in the past 10 years, released on Thursday, exports of Korean food items rose from three-point-5-1 billion U.S. dollars in 2015 to seven-point-zero-two billion dollars in 2024. On average, exports of food products rose eight percent annually during the same period. By item, ramyeon was on top with exports worth one-point-3-6 billion dollars, followed by ready-made food at 980 million dollars, beverages at 940 million dollars, and health food at 820 million dollars. By country, the U.S. was the top country importing Korean food items, followed by China and Japan.

S. Korea's consumer prices up 2.00% y/y in Feb.

2025/03/06 10:00

Consumer prices in South Korea remain high, with inflation in the two percent range for the second month straight. Data from Statistics Korea on Thursday showed that the country's consumer price index – a key gauge of inflation – rose two percent in February year-on-year. This is a slight decline compared to the two-point-two percent growth seen in January, following three consecutive months of rising inflation figures. While prices of fresh produce saw a decline for the first time since March 2022, the 'cost of living' index measuring 140 items often bought by consumers rose by the largest amount since July last year.

China aims for economic growth of around 5% for 2025

2025/03/05 20:00

Elsewhere. China is aiming for an economic growth target of some five-percent this year, which is similar to last year's, despite the broader ripple effects of a trade war with the U.S. Choi Soo-hyung has details. The Chinese government has set its economic growth target for this year at around 5 percent for the third consecutive year. On Wednesday, at the opening of the National People's Congress in Beijing, Chinese Premier Li Qiang said that China needs to focus on job stability, risk prevention, and improving people's livelihoods. He also announced that the Consumer Price Index increase rate for this year is around 2 percent, the lowest in 20 years since 2004. Premier Li added that the goal is to improve the balance between supply and demand and keep overall prices within a reasonable range. Experts say that China is focusing on boosting domestic demand due to increasing uncertainty in global markets. "In a planned economy, the government always says they will try hard to make it happen, rather than just expecting it. This means it will work hard to achieve that 5% growth target. It also means China will actively boost domestic demand." China has also increased its fiscal deficit ratio to 4 percent of GDP this year, and raised its research and development budget by 10 percent compared to last year. Experts said this means that Beijing will expand government spending widely in response to Trump's tariff policies. "Beijing is focusing on boosting domestic demand and increasing government spending. With the possibility of higher U.S. tariffs on Chinese goods, China is taking aggressive measures such as raising its fiscal deficit to 4% of GDP " China's defense budget will also rise to 7-point-2 percent this year. China has increased its defense budget for four years in a row with a growth rate above 7 percent, even as economic growth has slowed, meaning military pressure on Taiwan is expected to rise. At the meeting, it was mentioned that there would be active participation in multilateral organizations such as APEC and the G20 to strengthen trade cooperation, as well as continued efforts to promote a Free Trade Area among South Korea, China and Japan. Choi Soo-hyung, Arirang News.

S. Korea's GNI per capita rose to US$ 36,624 in 2024, overtaking Japan and Taiwan

2025/03/05 20:00

The country witnessed a modest rise in income growth last year amid a weaker Korean currency against the greenback. Our Moon Hye-ryeon covers this latest finding and its regional implications. South Korea's gross national income per capita edged up by just over one percent last year due to the Korean won's depreciation against the U.S. dollar. Preliminary data from the Bank of Korea on Wednesday shows that it grew by five-point-seven percent in the local currency, but when converted into U.S. dollars, 36-thousand-624 dollars reflects a much lower growth rate of one-point-two percent. South Korea's GNI per capita first surpassed the 30-thousand dollar mark back in 2014 and continued steady growth before dropping in 2022 due to the weakening of the won against the greenback. The Bank of Korea stated that it is estimated to have surpassed that of Japan and Taiwan once again. "According to Taiwan's statistics agency, Taiwan's GNI per capita stood at 35-thousand-188 dollars last year. As for Japan, our calculations based on official data and exchange rates suggest that it was slightly above 34-thousand-500 dollars. Like the year before that, South Korea's GNI per capita is believed to be higher than that of both Japan and Taiwan." Comparing GNI per capita among countries with populations above 50 million people, the BOK noted that only five had higher figures than South Korea. The central bank cautioned that exchange rate fluctuations could affect previous forecasts. "The IMF projected last year that South Korea's GNI per capita would surpass 41-thousand dollars in 2027, but given recent exchange rate volatility, this estimate requires further observation." Meanwhile, the country's gross domestic product, which doesn't include overseas earnings, increased by two percent year-on-year. This is the same as the preliminary estimate given in January, but some revisions to sector-specific growth figures were made. Exports, government spending, and imports were revised upwards, while construction investment and facility investment figures were cut. Moon Hye-ryeon, Arirang News.

S. Korea to create 50 trillion Korean won fund for key strategic industries

2025/03/05 20:00

Korea is poised to set up an advanced strategic industry fund of 50-trillion Korean won or some 34-billion U.S. dollars over the next five years. The fund will seek to support key future industries, such as batteries and chips. Intentions to this end were shared during a related meeting earlier on Wednesday, presided over by acting President Choi Sang-mok who also underscored the importance of securing a head start amid a rapidly changing environment with proactive and bold industrial investments. The aforementioned fund is expected to reach some 68-billion U.S. dollars with the support of commercial banks.

S. Korea's GNI per capita rose to US$ 36,624 in 2024, overtaking Japan and Taiwan

2025/03/05 17:00

South Korea witnessed a modest rise in income growth last year amid a weaker Korean currency against the U.S. dollar. Our correspondent Moon Hye-ryeon covers this latest finding and its regional implications. South Korea's gross national income per capita edged up by just over one percent last year due to the Korean won's depreciation against the U.S. dollar. Preliminary data from the Bank of Korea on Wednesday shows that it grew by five-point-seven percent in the local currency, but when converted into U.S. dollars, 36-thousand-624 dollars reflects a much lower growth rate of one-point-two percent. South Korea's GNI per capita first surpassed the 30-thousand dollar mark back in 2014 and continued steady growth before dropping in 2022 due to the weakening of the won against the greenback. The Bank of Korea stated that it is estimated to have surpassed that of Japan and Taiwan once again. "According to Taiwan's statistics agency, Taiwan's GNI per capita stood at 35-thousand-188 dollars last year. As for Japan, our calculations based on official data and exchange rates suggest that it was slightly above 34-thousand-500 dollars. Like the year before that, South Korea's GNI per capita is believed to be higher than that of both Japan and Taiwan." Comparing GNI per capita among countries with populations above 50 million people, the BOK noted that only five had higher figures than South Korea. The central bank cautioned that exchange rate fluctuations could affect previous forecasts. "The IMF projected last year that South Korea's GNI per capita would surpass 41-thousand dollars in 2027, but given recent exchange rate volatility, this estimate requires further observation." Meanwhile, the country's gross domestic product, which doesn't include overseas earnings, increased by two percent year-on-year. This is the same as the preliminary estimate given in January, but some revisions to sector-specific growth figures were made. Exports, government spending, and imports were revised upwards, while construction investment and facility investment figures were cut. Moon Hye-ryeon, Arirang News.

S. Korea to create 50 trillion Korean won fund for key strategic industries

2025/03/05 17:00

Korea is poised to set up an advanced strategic industry fund of 50 trillion Korean won or some 34 billion U.S. dollars over the next five years. The fund will seek to support key future industries such as batteries and chips. Intentions to this end were shared during a related meeting earlier on this Wednesday presided over by acting President Choi Sang-mok who also underscored the importance of securing a head start amid a rapidly changing environment with proactive and bold industrial investments. Now the aforementioned fund is expected to reach some 68 billion U.S. dollars with the support of commercial banks.

China aims for economic growth of around 5% for 2025

2025/03/05 17:00

Meanwhile China is aiming for an economic growth target of some five-percent this year despite the broader ripple effects of a trade war with the U.S. Choi Soo-hyung has details. The Chinese government has set its economic growth target for this year at around 5 percent for the third consecutive year. On Wednesday, at the opening of the National People's Congress in Beijing, Chinese Premier Li Qiang said that China needs to focus on job stability, risk prevention, and improving people's livelihoods. He also announced that the Consumer Price Index increase rate for this year is around 2 percent, the lowest in 20 years since 2004. Premier Li added that the goal is to improve the balance between supply and demand and keep overall prices within a reasonable range. Experts say that China is focusing on boosting domestic demand due to increasing uncertainty in global markets. "In a planned economy, the government always says they will try hard to make it happen, rather than just expecting it. This means it will work hard to achieve that 5% growth target. It also means China will actively boost domestic demand." China has also increased its fiscal deficit ratio to 4 percent of GDP this year, and raised its research and development budget by 10 percent compared to last year. Experts said this means that Beijing will expand government spending widely in response to Trump's tariff policies. "Beijing is focusing on boosting domestic demand and increasing government spending. With the possibility of higher U.S. tariffs on Chinese goods, China is taking aggressive measures such as raising its fiscal deficit to 4% of GDP " China's defense budget will also rise to 7-point-2 percent this year. China has increased its defense budget for four years in a row with a growth rate above 7 percent, even as economic growth has slowed, meaning military pressure on Taiwan is expected to rise. At the meeting, it was mentioned that there would be active participation in multilateral organizations such as APEC and the G20 to strengthen trade cooperation, as well as continued efforts to promote a Free Trade Area among South Korea, China and Japan. Choi Soo-hyung, Arirang News.

S. Korea's GNI per capita rises to US$ 36,624 in 2024

2025/03/05 10:00

South Korea's gross national income per capita edged up by just over one percent last year due to the Korean won's depreciation against the U.S. dollar. Preliminary data from the Bank of Korea on Wednesday showed that in local currency GNI grew by five-point-seven percent, but when converted into U.S. dollars the rate was lower at one-point-two percent, amounting to 36-thousand-624 dollars. The country's GDP growth rate for 2024 was confirmed at two percent, unchanged from preliminary data released last year. South Korea's GNI per capita first surpassed the 30-thousand dollar mark back in 2014 and continued steady growth before dropping in 2022 due to the weakening of the won against the greenback.

Euro reaches 2025 high while the stocks fall most in 7 months

2025/03/05 10:00

The euro rose to its highest level in 2025 fueled by expectations of increased European defense spending. The official currency of 20 European countries rose 0.5% against the U.S. dollar, on Tuesday reaching about 1.05 US dollars, its strongest level since December 10th of last year. That came after the European Commission announced plans to extend 150 billion euros, or 158 billion U.S. dollars in loans to boost defense budgets across the continent. Meanwhile, European stock markets tumbled amid concerns over U.S. President Donald Trump's tariff policies. The pan-European STOXX 600 index fell 2.1%, hitting its lowest level since August 2024. Investors fear that tariffs recently imposed on Canada, Mexico, and China could further weaken global economic growth and might also be extended to Europe.

S. Korea launches first alternative stock exchange Nextrade

2025/03/04 20:00

South Korea's first alternative stock trading platform Nextrade was launched Tuesday morning. It runs for 12 hours from 8 AM to 8 PM, longer than the trading hours of the main Korea Exchange bourse. It also has lower commission fees compared to the main bourse. It started with 10 firms being traded, but the number is expected to rise to 800 over the next month.

S. Korea's industrial output in Jan. sees biggest drop in nearly 5 years

2025/03/04 20:00

Meanwhile. Korea's industrial output, facility investment, and retail sales all fell in January amid growing concerns stemming from U.S. tariffs. Park Kun-woo has the numbers. South Korea's production, investment, and consumption all dropped in January, according to data from Statistics Korea on Tuesday, marking the first decline in two months. "That was mainly due to the base effect from relatively strong growth the previous month and fewer working days due to the long Lunar New Year holiday." Overall industrial output in January decreased by 2-point-7 percent on-month. That's the largest drop in nearly five years, since early 2020 when the number of COVID-19 cases started to surge. The mining and manufacturing sector fell by over two percent, despite a slight increase in chip production. In investment, facility investment plunged more than 14 percent on-month, the biggest drop in over four years, driven by declines in machinery and transport equipment. Construction and civil engineering project results also fell, contributing to the overall drop in investment. Consumption also decreased in January by point-6 percent compared to the previous month, with drops seen in items such as cosmetics. One expert said it will be difficult to see any positive signs across the board throughout the year, especially regarding the tariff war. "Exports will decline dramatically. Korean companies are exporting goods produced in China to the United States; that will be devastating. And another one is many Korean companies has established the factories in Mexico." Amid these challenges, the Finance Ministry has vowed to strengthen efforts to support the recovery of people's livelihoods and boost exports through funding. Park Kun-woo, Arirang News.

S. Korea's industrial output in Jan. sees biggest drop in nearly 5 years

2025/03/04 17:00

We begin with the triple tumble if you will of Korea's industrial output facility investment and retail sales in January amid growing concerns over the broader impact of U.S. tariffs. Park Kun-woo has our top story. South Korea's production, investment, and consumption all dropped in January, according to data from Statistics Korea on Tuesday, marking the first decline in two months. "That was mainly due to the base effect from relatively strong growth the previous month and fewer working days due to the long Lunar New Year holiday." Overall industrial output in January decreased by 2-point-7 percent on-month. That's the largest drop in nearly five years, since early 2020 when the number of COVID-19 cases started to surge. The mining and manufacturing sector fell by over two percent, despite a slight increase in chip production. In investment, facility investment plunged more than 14 percent on-month, the biggest drop in over four years, driven by declines in machinery and transport equipment. Construction and civil engineering project results also fell, contributing to the overall drop in investment. Consumption also decreased in January by point-6 percent compared to the previous month, with drops seen in items such as cosmetics. One expert said it will be difficult to see any positive signs across the board throughout the year, especially regarding the tariff war. "Exports will decline dramatically. Korean companies are exporting goods produced in China to the United States; that will be devastating. And another one is many Korean companies has established the factories in Mexico." Amid these challenges, the Finance Ministry has vowed to strengthen efforts to support the recovery of people's livelihoods and boost exports through funding. Park Kun-woo, Arirang News.