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South Korea Raises 2026 GDP Growth Forecast to 3.0%-3.7% on Semiconductor Supercycle

2026-07-12 05:07:46

According to Asia Economy's survey of 14 South Korean economists, the country's 2026 GDP growth forecast was raised to 3.0% to 3.7% range on July 12, ahead of the central bank's rate decision on July 16. The median forecast of 3.0% was cited by the most respondents, with 72.7% of participants upgrading their prior estimates. Economists attributed the upward revision to Korea's semiconductor supercycle, which is expected to drive exports and boost capital investment across the economy. Some analysts project growth could exceed 3.5%, supported by expansionary fiscal policies. Consumer price inflation is forecast at 2.7%, with experts citing sustained pressure from geopolitical tensions affecting oil prices and won weakness. Growth is expected to moderate to 2.2%-2.3% in 2027.

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