The International Monetary Fund (IMF) lowered its economic growth forecast for South Korea to 2% for 2025, down from 2.2% projected in October, citing high uncertainties and weak domestic demand. Rahul Anand, IMF Korea mission chief, announced the revision after a two-week consultation with South Korean authorities, including the finance ministry and the Bank of Korea. Real GDP is projected to expand by 2% in 2025 as the economy converges to its potential growth, Anand said. The IMF's forecast is more conservative than those of the Bank of Korea and the government, which project growth at 2.1% and 2.2%, respectively. Anand emphasised significant downside risks, including a slowdown among trading partners and geopolitical tensions, urging structural reforms to address long-term challenges like an ageing population.