SEOUL, 3rd July, 2024 (WAM) – The South Korean government raised its forecast for economic growth in 2024 to 2.6 percent, citing solid exports and a global economic recovery.
The latest projection marks a 0.4 percentage-point increase from its previous outlook presented in January.
"The recovery in exports is expected to be strong through the second half on the back of the gradual growth of the global economy and the brisk semiconductor industry," the Ministry of Economy and Finance said in a report on its economic policy direction, according to Yonhap.
The economy has been on a recovery track since late last year following a downturn amid the COVID-19 pandemic and the global economic slowdown.
The government's latest projection is on par with the projection by the Organisation for Economic Cooperation and Development and the Korea Development Institute.
The Bank of Korea presented a 2.5 percent expansion, and the International Monetary Fund forecast 2.3 percent growth.
In the first quarter of 2024, the country logged a 1.3 percent on-year expansion, the highest level in more than two years.
The government has said that the country is projected to reach the target rate of 2 percent by around the end of this year.
The ministry expected the economy to grow 2.2 percent in 2025 and consumer prices to rise 2.1 percent.