The Bank of Korea(BOK) has lowered this year’s economic growth forecast to between one-point-six percent and one-point-seven percent.

The latest outlook was revealed in the central bank’s economic assessment report, released Monday.

In November 2024, the BOK had forecast one-point-nine percent growth for the year.

Explaining the downward revision, the central bank cited political uncertainty triggered by last month’s martial law incident and the resulting weak economic sentiment.

The BOK said it expects the heightened political uncertainty to persist through the first quarter of this year but ease gradually after that.

It said next month’s forecast depends largely on when the political turmoil is resolved, as well as on the government’s economic stimulus measures and the economic policies of the new U.S. administration.