The Bank of Korea announced on the 26th that it has adjusted its economic growth forecast for the current year to 2.0%. This increase of 0.2 percentage points from the previous forecast of 1.8%, made in November last year, suggests a positive outlook for the South Korean economy. The Bank also projected a growth rate of 1.8% for next year, a slight reduction from the earlier forecast of 1.9%. The revision is attributed to the strengthening of exports and increased fiscal spending observed since the latter half of last year, particularly highlighting the growth in semiconductor exports and the rebound in private consumption expected this year.

Last year, the South Korean economy experienced fluctuations, starting with a contraction of -0.2% in the first quarter due to internal turmoil, followed by a recovery in the second quarter with a growth of 0.6%. The growth rate surged to 1.2% in the third quarter but fell again to -0.3% in the fourth quarter, resulting in an annual growth rate of just 1%. Various institutions have also released their growth forecasts for this year, with the Ministry of Economy and Finance estimating 2.0%, the International Monetary Fund (IMF) and the Korea Development Institute (KDI) projecting 1.9%, and the Organisation for Economic Co-operation and Development (OECD) predicting 2.1%.