Lee Chang-yong, governor of the Bank of Korea, noted during a press conference following the Monetary Policy Committee on the 10th, "I expect the gross domestic product (GDP) of Korea to rise by 0.1 percentage points due to the first and second supplementary budget this year."
Governor Lee said, "In May, I had expected the economic growth rate for Korea to be 0.8%." He added, "Mechanically speaking, the effects of the first supplementary budget are already included in the May forecast."
He continued, "Recent data shows that consumption seems to have improved a bit compared to the forecast in May, and exports are also doing well, especially in semiconductors," and added, "There may be a positive effect from that." He further stated, "On the other hand, construction is worse than expected, so this will offset such effects."
Governor Lee pointed out, "In the May forecast, it was assumed that the United States would impose a 10% reciprocal tariff," and stated, "The most challenging issue currently is the tariff measures that are postponed until August 1."
He added, "If tariff measures are announced on August 1, it will clarify the impact of the supplementary budget or tariff on the economy," and said, "We should be able to discuss the impacts when we release the growth rate during the August briefing."