Business · Economy · 38 mins ago
IMF Sees South Korea’s Potential Growth Rising for Two Years
The IMF expects South Korea’s potential growth to rise for a second year in a row, a first in 40 years.
It forecasts a rate of 1.94% last year, 2.14% this year and 2.20% next year.
The IMF links the increase to a boom in semiconductors, which it expects to strengthen the country’s growth outlook.
Samsung Electronics and SK Hynix are receiving much of the boom’s benefits, according to concerns raised in South Korea.
Critics warn that this concentration could widen the gap between the boom and people’s experience of the economy.
The figures are forecasts, and the concerns point to a risk that growth may not be felt widely.
The IMF forecasts that South Korea’s potential growth rate will rise for a second consecutive year in 2026 and 2027, the first such increase in about 40 years.
It estimates the rate at 2.14% in 2026 and 2.20% in 2027, up from 1.94% in 2025.
The articles cite semiconductor investment and the spread of artificial intelligence as possible drivers of the improvement.
They also warn that gains concentrated in major exporters may not improve conditions for small businesses, smaller firms and lower-income households.
- Who
- The International Monetary Fund made the forecast.
- What
- South Korea’s potential growth rate is forecast to rise for two consecutive years.
- When
- In 2026 and 2027, according to the IMF’s October World Economic Outlook.
- Where
- South Korea.
- Why
- Semiconductor investment and the spread of artificial intelligence are cited as factors that could raise productivity and growth potential.
IMF growth outlook
Concerns about concentrated gains
Potential growth
IMF growth outlook
The IMF forecasts an increase to 2.14% in 2026 and 2.20% in 2027.
Concerns about concentrated gains
The articles warn that stronger potential growth may not translate into better everyday economic conditions.
Drivers and benefits
IMF growth outlook
Semiconductor investment and AI are cited as lifting the economy’s growth capacity.
Concerns about concentrated gains
Critics cited in the articles say benefits may be concentrated among major semiconductor exporters, widening the gap with domestic businesses and households.
South Korea’s potential growth rate was 4.05%, according to the article.
The rate had fallen to 2.97%.
The rate fell to 1.28%.
The IMF estimated the rate at 1.94%.
The IMF forecast a rate of 2.14%.
The IMF forecast a rate of 2.20%, which would mark a second consecutive annual increase.
- 2025 potential growth
- 1.94%
- 2026 forecast
- 2.14%
- 2027 forecast
- 2.20%
- Longest recent rise
- First two consecutive annual increases in about 40 years
- Cited drivers
- Semiconductor investment and AI
- Government target
- Raise potential growth to 3%