- विज्ञापन -
Seoul: According to a survey conducted by the Korea Enterprises Federation (KEF), over 80% of South Korean firms believe that Donald Trump’s potential return to the presidency would negatively impact the national economy. The survey, which included 239 companies with at least 30 employees, revealed that 82% of respondents cited concerns over Trump’s protectionist policies, particularly given South Korea’s heavy reliance on exports. Only 7.5% of companies felt that his reelection could be advantageous, mainly due to his anticipated approach toward China.
Amid economic uncertainties, nearly half (49.7%) of the businesses indicated plans for austerity measures in the coming year. Meanwhile, 28% intend to maintain their current operations, and 22.3% plan to expand. This austerity outlook is the highest since 2019, with 66.7% of companies prioritizing cost reductions, 52.6% focusing on efficient manpower use, and 25.6% aiming to reduce new investments.
The KEF projects a 1.9% growth for the Korean economy next year, with recovery expected to begin post-2026. In line with this, the Bank of Korea has also revised its growth forecast for 2024 down to 1.9%, noting sluggish export growth influenced by evolving trade policies from the U.S. and other key economies. This adjustment is a 0.2 percentage-point decrease from its previous estimate made in August and is lower than the country’s potential growth rate of 2%.
