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 forecast for South Korea's economic growth for the year to 3.3 percent from 2.6 percent three months prior, a 0.7 percentage point rise, according to the Ministry of Finance and Economy. This upward revision is primarily attributed to robust semiconductor exports, which the IMF believes can offset the economic impact of the conflict in the Middle East.
However, the advantages have not been evenly distributed across households and other sectors of the domestic economy yet, leading to worries that a decline in artificial intelligence (AI) spending or chip demand could single-handedly undermine South Korea's heavy reliance on one industry. The IMF's October World Economic Outlook, released earlier in the day, provided a more substantial upward adjustment compared to the global economy or advanced economies collectively.
The global growth projection was raised by 0.1 percentage point, from 3 percent to 3.1 percent, while the estimate for advanced economies saw a 0.4 percentage-point increase, from 1.7 percent to 2.1 percent. Among the specific advanced economies mentioned in the ministry's summary, Germany experienced a 0.6 percentage-point upgrade, which ranked second.
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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