IMF and ADB, 2026year South Korea growth rate 2.6raised to %
The IMF and the Asian Development Bank (ADB) 2026raised their forecasts for South Korea's growth this year to 2.6%, respectively. Demand related to semiconductors and AI was cited as an upward factor, and the ADB raised its inflation forecast to 2.7%.
The IMF and the Asian Development Bank (ADB) 2026raised their forecast for South Korea's economic growth this year to 2.6%, a figure directly linked to export and stock-market trends.
The IMF 7month 8released its World Economic Outlook Update on the day and projected South Korea's growth this year at 2.6%. This is 4month's forecast of 1.9%, an increase from that figure.
The ADB also 7month 8assessed South Korea's growth this year at 2.6% in the Asian Development Outlook (ADO) released on the day (local time). The ADB projected growth for 2027year at 2.0%.
ADB raised its inflation forecast from the previous 2.3% to 2.7%.
The two institutions cited the recovery in semiconductor demand and the boost to exports from global demand related to artificial intelligence (AI) as the reasons for the upgrade.
The Ministry of Economy and Finance explained that this resulted from stronger-than-expected growth compared with the forecast for the quarter and the cushioning effect of government measures in response to the conflict in the Middle East.1The Ministry of Economy and Finance explained that this resulted from stronger-than-expected growth compared with the forecast for the quarter and the cushioning effect of government measures in response to the conflict in the Middle East.
ADB forecast that consumption would remain stable, supported by rising stock markets, strong earnings at information technology (IT) companies, and government support.
ADB identified rising energy prices, supply-chain disruptions, the possibility of the United States reimposing tariffs, and the onset of a stock-market correction as potential downside risks.
ADB said it had also raised its growth forecasts for some advanced economies in Asia and the Pacific, including Taiwan, Hong Kong, and Singapore, reflecting strong conditions in the semiconductor industry.
The IMF presented its global growth forecast at 3.0%, saying that Korea had the highest forecast among the G20 developed countries.