South Korea Raises 2026 Growth Forecast to 3% on Chip Boom
Officials said strong AI chip demand will keep exports rising as the ministry fast-tracks three mega projects and lifts 2026 inflation to 2.6%.
- On Tuesday, South Korea raised its 2026 growth forecast to 3.0%, a five-year high, driven by a global semiconductor boom and strong AI investment demand.
- The government plans to fast-track three "mega projects" in semiconductor and AI sectors, with 2027 budget spending increasing by at least 10% to support strategic priorities.
- Stronger semiconductor tax revenues enabled a record $290 billion current-account surplus forecast for this year, though inflation remains elevated at 2.6% amid high energy costs.
- Vice Finance Minister Lee Hyoung-il stated that while exports offer opportunities, "there remain tasks that our economy needs to overcome at the same time." The ministry targets 3% potential growth and $40,000 per-capita income.
- The projection exceeds the International Monetary Fund's 2.6% forecast published last week, while officials expect growth to moderate to 2.2% in 2027 as uncertainties persist.
22 Articles
22 Articles
S. Korea gov't revises up 2026 growth outlook to 3 pct on chip supercycle
The South Korean government on Tuesday revised up its economic growth projection for 2026 to 3 percent, up 1 percentage point from its previous outlook, citing a semiconductor supercycle.
South Korea Turns More Bullish on Economy as Chip Boom Rolls On
South Korea’s government is taking a more bullish view of the economy than the International Monetary Fund’s recent assessment, maintaining that an artificial intelligence-driven semiconductor boom will continue to outweigh the impact of the Middle East conflict.
Observador
Noticias ao MinutoAccording to the South Korean Finance Minister, the country's government expected growth of 2%, but turned to a 1% increase. AI sector with "historic profits" for large manufacturers.
On the 14th, the government announced in its ‘Second-Half Economic Growth Strategy’ that it is raising its forecast for this year’s ‘nominal growth rate’ from 4.9% to 12.3%. This marks a shift from the past, when only ‘real growth rate’ forecasts were released as recently as January. On the same day, a high-ranking government official stated, “We plan to manage the nominal growth rate in parallel with the real growth rate.” This policy of managi…
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