Business · Economy · 32 mins ago
IMF raises South Korea’s 2026 growth forecast to 3.3%
The IMF raised South Korea’s 2026 growth forecast to 3.3%, up from 2.6% in July.
It said strong overseas demand for semiconductors, including chips used in AI hardware, is expected to support growth.
The forecast increase was larger than the revisions for the world economy and advanced economies overall.
If the forecast is met, South Korea’s economy would grow faster than the United States for the first time since 2022.
The Middle East war and rising prices and interest rates remain risks, despite the expected export strength.
South Korea’s finance ministry said it plans to address pressure on households and longer-term economic challenges.
The IMF also urged governments to keep inflation under control and provide limited, targeted support to vulnerable people.
The IMF raised its forecast for South Korea’s 2026 economic growth to 3.3% from 2.6%.
The IMF cited strong external demand for semiconductors, which it said would offset the negative effects of the Middle East war.
The new forecast is 0.7 percentage points higher than the IMF’s July estimate.
If realized, South Korea’s growth rate would exceed the US rate for the first time since 2022.
The article also notes risks from a prolonged war, inflation and higher interest rates.
- Who
- The International Monetary Fund (IMF).
- What
- It raised its 2026 growth forecast for South Korea to 3.3% from 2.6%.
- When
- The forecast was reported on October 13, 2026, in the IMF’s October World Economic Outlook.
- Where
- South Korea.
- Why
- The IMF said strong external demand for semiconductors would support growth and offset the war’s negative effects.
This story does not have two clearly opposing sides.
The IMF’s revised forecast put South Korea’s 2026 growth at 2.6%.
The IMF’s October World Economic Outlook forecast South Korea’s 2026 growth at 3.3%.
- 2026 growth forecast
- 3.3%
- Previous forecast
- 2.6% in July 2026
- Forecast increase
- 0.7 percentage points
- Main growth support
- Strong external demand for semiconductors
- IMF global growth forecast
- 3.1% for 2026
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What people are saying
Strong external demand for semiconductors will support South Korea’s growth by offsetting the negative effects of the war.
The impact is assessed to be due to strong exports related to AI hardware and semiconductors in South Korea.