First Forecast of 4% Growth Emerges for This Year: What Is Behind the Upward Revision?

[Economy 365]

A forecast that the South Korean economy could grow by 4 percent this year has emerged for the first time.

Capital Economics, based in the United Kingdom, has projected South Korea's real gross domestic product (GDP) growth rate for this year at 4 percent.

The firm has raised its forecast almost every month, from 1 percent in February to 1.6 percent in March, 2.7 percent in April, and 4 percent last month.

Korean Re, a domestic reinsurance company, provided an even higher projection at 4.1 percent.

Among the 42 domestic and international institutions tracked by Bloomberg, a total of 11 have predicted a growth rate of 3 percent or higher for this year.

These institutions cited strong exports of AI-related semiconductors, large-scale technology facility investments, and the possibility of a supplementary budget as the reasons behind the upward revisions.

It is also highly likely that the Bank of Korea will upwardly adjust its current 2.6 percent growth forecast for this year in its revised economic outlook scheduled for August.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.