The government has revised down its growth outlook for the domestic economy to zero-point-nine percent this year.

In announcing the administration’s economic growth strategy on Friday, the finance ministry made the downward revision from one-point-eight percent projected early this year.

The Bank of Korea and the Korea Development Institute have both predicted annual growth of zero-point-eight percent.

A slowdown in exports and a slump in the construction sector were reflected in the revision, with investment in construction expected to drop eight-point-two percent in 2025 and the increase in outbound shipments to slow down to zero-point-two percent.

U.S. tariffs are expected to deal a blow to the country’s automobile, steel, petroleum and chemical industries.

Domestic consumption, meanwhile, is seen as likely to rise one-point-three percent as a result of the government’s extra budget and other policies.

The ministry forecast inflation of two percent this year, overturning its previous outlook of one-point-eight percent, while anticipating growth of one-point-eight percent in 2026.