South Korea Lifts 2026 Economic Growth Forecast
(MENAFN) South Korea’s state-run think tank on Wednesday lifted its economic growth forecast for 2026, citing stronger performance in both exports and consumer spending.
The Korea Development Institute (KDI) projected that real gross domestic product (GDP), adjusted for inflation, will increase 1.9 percent this year, up from the 1.8 percent estimate issued three months ago. South Korea’s real GDP grew 1.0 percent in 2025.
Export growth is now expected to hit 2.1 percent in 2026, a significant rise from the previous forecast of 1.3 percent. Meanwhile, private consumption is projected to climb 1.7 percent this year, following a 1.3 percent increase last year.
The institute also revised its forecast for facility investment upward by 0.4 percentage points to 2.4 percent. In contrast, the outlook for construction investment was cut by 1.7 percentage points to 0.5 percent.
For the current account, the surplus is expected to reach 148.8 billion U.S. dollars in 2026. Consumer price inflation is projected at 2.1 percent, and employment is anticipated to grow by 170,000 jobs.
The Korea Development Institute (KDI) projected that real gross domestic product (GDP), adjusted for inflation, will increase 1.9 percent this year, up from the 1.8 percent estimate issued three months ago. South Korea’s real GDP grew 1.0 percent in 2025.
Export growth is now expected to hit 2.1 percent in 2026, a significant rise from the previous forecast of 1.3 percent. Meanwhile, private consumption is projected to climb 1.7 percent this year, following a 1.3 percent increase last year.
The institute also revised its forecast for facility investment upward by 0.4 percentage points to 2.4 percent. In contrast, the outlook for construction investment was cut by 1.7 percentage points to 0.5 percent.
For the current account, the surplus is expected to reach 148.8 billion U.S. dollars in 2026. Consumer price inflation is projected at 2.1 percent, and employment is anticipated to grow by 170,000 jobs.
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