ADB raises Korea's 2026 growth forecast to 3.2%

The Asian Development Bank (ADB) has raised its 2026 economic growth forecast for South Korea to 3.2 percent, up from the 2.6 percent previously projected in July. The bank attributes this increase to strong exports and corporate earnings driven by the artificial intelligence (AI) boom. Additionally, the ADB has raised its 2027 growth outlook for the country to 2.3 percent, a 0.3 percentage point increase.

The revised forecasts reflect Korea's growing exports due to soaring global demand for AI chips, as well as the country's expansionary fiscal policy and robust corporate earnings contributing to a gradual recovery in private consumption. However, the ADB warns of potential risks such as rising geopolitical tensions, increased volatility in global financial markets, and additional U.S. tariff hikes, which could negatively impact exports and investment. The bank maintains its current inflation projections.

Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.