SEOUL, Aug. 23 (Xinhua) -- The South Korean government on Friday revised down its 2025 growth outlook by 0.9 percentage points amid uncertainties at home and abroad.

Real gross domestic product (GDP), adjusted for inflation, was forecast to grow 0.9 percent this year, down from 1.8 percent estimated in January, according to the Ministry of Economy and Finance.

The downward revision was attributable to the U.S. tariffs imposition and political uncertainties caused by the short-lived martial law imposition by the impeached former president last December.

The new government of President Lee Jae-myung, who took office in early June, implemented an extra budget plan to provide cash handouts, which was aimed at bolstering consumer demand.

The real GDP, which advanced 2.0 percent in 2024, was expected to expand 1.8 percent in 2026.

Private consumption was projected to rise 1.3 percent in 2025 before swelling 1.7 percent in 2026.

The country's central bank lowered its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after cutting it by the same basis points in October and November last year.

Facility investment was forecast to climb 2.0 percent this year and 1.5 percent next year, but construction investment was expected to tumble 8.2 percent in 2025 before mounting 2.7 percent in 2026.

Export, which accounts for about half of the export-driven economy, was projected to inch up 0.2 percent this year after going up 8.1 percent last year.

The outbound shipment was predicted to reduce 0.5 percent next year amid the lingering uncertainties caused by the U.S. protectionist moves.

The outlook for the current account surplus was set at 95 billion U.S. dollars for 2025 and 80 billion dollars for 2026.

The number of jobs was expected to increase 170,000 this year and 110,000 next year, while the outlook for the hiring rate was placed at 62.8 percent for 2025.

The forecast for consumer price inflation was set at 2.0 percent for both this year and next year.

To boost the Asian country's growth potential and future growth, the Lee government unveiled 30 projects focusing on technological innovation in artificial intelligence (AI), renewable energy, and cutting-edge materials and parts.

Fifteen projects of the AI transformation included the AI development for humanoid robots, self-driving cars, drones, autonomous ships, home appliances, factories and semiconductors.

The other 15 projects involved the development of silicon carbide (SiC) power semiconductors, parts and materials for LNG storage tank, superconductors, graphene, next-generation solar cells, high-voltage direct current (HVDC), green hydrogen, the small modular reactor (SMR) and ultrahigh definition satellites.

To finance the projects, a tentatively named "national growth fund" of 100 trillion won (71.8 billion U.S. dollars) will be created, with 50 trillion won (35.9 billion dollars) from the public and the private sectors each.■