Goldman Sachs: South Korea's fiscal stimulus plan could increase economic growth by 0.3 percentage points by 2025.

Goldman Sachs economists Irene Choi and Goohoon Kwon reported that South Korea's fiscal stimulus package could boost economic growth in 2025 by 0.3 percentage points. They anticipate that the South Korean government's latest second supplementary budget proposal will bring about a net increase in expenditure of 14.9 trillion won, which, on top of the first supplementary budget plan that raised overall GDP growth by 0.2 percentage points this year, will further increase GDP growth by 0.1 percentage points. According to the latest forecasts from the Bank of Korea and the Korea Development Institute, South Korea's economy is expected to grow by 0.8% in 2025, compared to a growth rate of 2.0% in 2024; both institutions have recently revised down their growth projections for 2025.