South Korean Think Tank Raises 2026 Growth Forecast
By Kwanwoo Jun
South Korea's state-run think tank has raised its growth and inflation forecasts for this year, citing improving domestic consumption and strong semiconductor exports driven by the artificial-intelligence boom.
The Korea Development Institute said in an economic outlook report released Wednesday that it now expects gross domestic product to grow 1.9% for 2026, compared with its November projection of 1.8%. The economy expanded an estimated 1.0% in 2025, KDI said.
"Going forward, our economy is expected to grow somewhat, driven by robust semiconductor exports and a recovery in consumption, despite the U.S. tariff hike and the delay in the recovery of construction investment," it said.
"Amid the impact of accumulated interest rate cuts, real incomes are improving and driving consumption recovery."
KDI now expects consumer inflation to average 2.1% in 2026, unchanged from a year earlier and compared with its earlier estimate of 2.0%.
Projected GDP growth at around the upper 1% range for this year would exceed the country's estimated mid-1% potential growth rate, it said.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
February 10, 2026 22:14 ET (03:14 GMT)
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