Business · Economy · 1 hr ago
South Korea’s Growth Could Reach 3.4% to 3.6%, Minister Says
South Korean Finance Minister Lee Hyung-il said growth could reach 3.4% to 3.6% this year if the country avoids a major external shock.
He spoke at a news conference in Bangkok, Thailand, on October 16.
Exports and business investment, especially in semiconductors, are supporting growth, according to Lee.
The government’s current forecast is 3.0%, while the International Monetary Fund’s forecast is 3.3%, so his estimate is higher than both.
Lee also said stronger investment could eventually raise productivity and help South Korea’s long-term growth capacity recover.
The government is considering issuing economic forecasts three times a year from 2027, instead of twice.
If it adopts the plan, it may stop issuing a separate mid-year growth strategy and instead update forecasts and add targeted measures when needed.
South Korea’s finance minister said economic growth could reach 3.4% to 3.6% this year if there are no major external shocks.
That would exceed the government’s current forecast of 3.0% and the International Monetary Fund’s forecast of 3.3%.
Minister Lee Hyoung-il cited strong exports and equipment investment as reasons for the more optimistic outlook.
The government is considering increasing its economic forecasts from twice a year to three times a year starting next year.
Lee also said stronger investment could help South Korea’s potential growth rate rebound.
- Who
- Lee Hyoung-il, South Korea’s deputy prime minister and minister of finance and economy.
- What
- He said growth could reach 3.4% to 3.6% this year if there are no major external shocks. The government is considering issuing economic forecasts three times a year from next year.
- When
- Lee made the remarks on Oct. 16, local time.
- Where
- At a press conference in Bangkok, Thailand.
- Why
- Strong exports and equipment investment could support growth, while more frequent forecasts could better reflect rapidly changing economic conditions.
This story does not have two clearly opposing sides.
Lee spoke at a press conference in Bangkok and said growth could reach 3.4% to 3.6% if there are no major external shocks.
The government is considering increasing its economic forecasts from two a year to three.
- Possible growth this year
- 3.4% to 3.6%
- Current government growth forecast
- 3.0%
- IMF growth forecast
- 3.3%
- Current forecast frequency
- Twice a year
- Proposed forecast frequency
- Three times a year from next year
- Press conference location
- Bangkok, Thailand
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What people are saying
If there are no new external events that have a major impact during the remaining period, I think growth of 3.4% to 3.6% may be possible.
If there are no external shocks that have a major impact on our economy for the rest of the year, growth exceeding the IMF forecast of 3.3% may be possible.
Since the economy is changing rapidly, there is a need to make forecasts more often.