IMF raises Korea's growth forecast to 3.3% as chip exports outweigh war impact
The International Monetary Fund (IMF) lifted its forecast for Korea’s economic growth this year to 3.3 percent from 2.6 percent three months ago, a 0.7-percentage-point increase driven by strong semiconductor exports, the Ministry of Finance and Economy said Tuesday. The IMF sees chip demand providing enough support to outweigh the economic damage from the Middle East war. But the benefits have…
The International Monetary Fund (IMF) has increased its projection for South Korea's economic growth in 2023 to 3.3%, up from a previous forecast of 2.6%. This upward revision of 0.7 percentage points is primarily attributed to the robust performance of the country's semiconductor exports. The IMF maintains that the demand for chips will be sufficient to offset the economic repercussions of the ongoing Middle East conflict.
However, the advantages have not yet trickled down to the general population and the wider domestic economy, prompting concerns that if artificial intelligence (AI) spending or chip demand were to falter, South Korea's heavy reliance on one industry could be exposed. The IMF's October World Economic Outlook saw Korea receive a larger revision than both the global economy and advanced economies combined, with the global growth projection rising by 0.1 percentage point to 3.1% and advanced economies' growth forecast increasing by 0.4 percentage points to 2.1%.
Among the advanced economies specified in the ministry's summary, Germany was second to receive a 0.6-percentage-point upgrade.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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