Goldman Sachs has lowered South Korea’s economic growth forecast for this year by some point-four percentage point to two-point-eight percent, citing the end of the presidential election in the country and the Russia-Ukraine crisis.
 
In a report released on Thursday, the global investment bank attributed its downward revision to the recent jump in oil prices that will likely lead to cooler global and domestic demand.
 
It revised up this year’s consumer price index by some point-six percentage point to three-point-six percent, in line with a surge in prices of raw materials.
 
Goldman Sachs predicted that the election of Yoon Suk Yeol as South Korea’s next president will result in a less expansionary fiscal policy and a relatively eased monetary policy.
 
It also forecast that the Bank of Korea will raise its key interest rate twice by the end of this year, up 25 basis points each time.
 
Concerning financial policies, the investment bank anticipated that Yoon will pursue policies to modernize Korea’s capital market by protecting minority shareholders and enhancing market fairness.