Hyundai Economic Research Institute said, "Korea's growth rate during the global tariff war is 1.1%p↓"

Analysts say that if the "tariff war" spreads around the world due to the re-election of former U.S. President Trump, the country's economic growth rate could fall by 1.1 percentage points in the worst case.

The Hyundai Research Institute analyzed the assumption that Trump's rule only caused a tariff war between the U.S. and China, or that it spread around the world if it appeared between all countries doing business with the U.S.

As a result, global trade volume is estimated to fall by 0.36 to 3.60%, and Korean exports are estimated to fall by as little as $14.2 billion and as much as $34.74 billion.

As a result, the decline in Korea's economic growth rate was expected to be 0.5% to 1.1%p, and the decrease in the number of employed people in Korea was expected to be 128,000 to 313,000.

The Hyundai Economic Research Institute explained that the government should establish a public-private system to respond to the possibility of a sudden change in the global trade environment and promote that Korea's economic development helps achieve Trump's policy goals.

He also suggested that efforts to strengthen economic fundamentals are required to prevent a slump in the export economy from leading to a slump in domestic demand.