Half of economists forecast 1% growth range for Korea

More than half of economic experts expect South Korea's economic growth to remain in the 1 percent range this year, according to a local survey. The poll, conducted by Southernpost Inc. for the Korea Enterprises Federation (KEF), showed 54 percent of 100 economics professors holding this view. The average forecast stands at 1.8 percent, below the government's 2 percent outlook and the IMF's 1.9 percent projection.

A survey revealed that South Korea's economy is likely to grow in the low single digits this year. In a poll commissioned by the Korea Enterprises Federation (KEF) and conducted by Southernpost Inc., 54 percent of 100 economics professors predicted growth in the 1 percent range for 2026. Another 36 percent foresaw a shift to 2 percent starting in 2027, fueled by recovering consumption and demand, while 6 percent anticipated below 1 percent.

The economy expanded by 1 percent last year, down from 2 percent the year before. The average forecast of 1.8 percent falls short of the government's 2 percent target and the International Monetary Fund's (IMF) 1.9 percent estimate. Respondents projected the won-dollar exchange rate to fluctuate between 1,403 won and 1,516 won this year.

Nearly 60 percent of economists said the outcome of U.S.-South Korea tariff negotiations would negatively affect exports to the United States and domestic corporate investment. On the expanding use of artificial intelligence (AI) in workplaces, 92 percent viewed it as a solution to labor shortages and a boost to productivity, especially in manufacturing.

Almost 90 percent urged the government to implement strong measures against the overseas leakage of semiconductors and other core technologies, including severe penalties for violations. The survey results were released on January 25, 2026.

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Illustration of South Korea raising economic growth outlook with Seoul skyline and tech elements
صورة مولدة بواسطة الذكاء الاصطناعي

South Korea raises 2026 growth outlook to 3 percent, unveils 3-4-5 Vision

من إعداد الذكاء الاصطناعي صورة مولدة بواسطة الذكاء الاصطناعي

The South Korean government on July 14 raised its 2026 economic growth outlook to 3 percent, citing a semiconductor supercycle, and announced the 3-4-5 Vision targeting a 3 percent potential growth rate, top-four exporter status and US$50,000 GNI per capita.

Major global investment banks' average forecast for South Korea's 2026 economic growth reached 3 percent by the end of June. Strong semiconductor exports drove the upward revision.

من إعداد الذكاء الاصطناعي

The Bank of Korea reported on June 9 that real GDP rose 1.8 percent in the first quarter from the previous quarter. This marks the fastest quarterly growth in more than five years.

South Korea's industrial output fell 0.3 percent in May from April, mainly due to adjustments in chip production and supply disruptions, data released Tuesday showed.

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