South Korea Turns More Bullish on Economy as Chip Boom Rolls On
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Author of the article:You can save this article by registering for freehere. Orsign-inif you have an account. dzocpf9nz4nl09n]8wpgm1s)_media_dl_1. pngBank of Korea(Bloomberg) — South Korea’s government is taking a more bullish view of the economy than the International Monetary Fund’s recent assessment, maintaining that an artificial intelligence-driven semiconductor boom will continue to outweigh the impact of the Middle East conflict. Subscribe now to read the latest news in your city and across Canada. Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others. Daily content from Financial Times, the world's leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. Subscribe now to read the latest news in your city and across Canada. Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others. Daily content from Financial Times, the world's leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorIn its second-half economic policy strategy released Tuesday, the government raised its growth forecast for this year to 3% from 2% previously. The revised projection is above the 2. 6% forecast published just last week by the IMF. The fund’s forecast matched a Bank of Korea projection from May. The expansion that began in the second half of last year is expected to gather further momentum as strong demand for AI chips continues to offset the drag from the war, while a supplementary budget helps cushion the impact of higher energy costs, according to a joint government statement. The government expects growth to moderate to 2. 2% next year. Get the latest headlines, breaking news and columns. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Top Stories will soon be in your inbox. We encountered an issue signing you up. Please try againThe document also painted a brighter picture for South Korea’s external accounts, forecasting a record current-account surplus of $290 billion this year as soaring chip prices improve the nation’s terms of trade. That follows a record $141. 3 billion surplus in the first five months of 2026, already surpassing the previous annual high of $123. 1 billion recorded last year. The government also expects nominal growth to reach its fastest pace in three decades, lifting per-capita gross national income close to $40,000, while reducing the government debt-to-GDP ratio to 47% in 2026 from a previously projected 50. 6%. With regard to inflation, the government warned that energy markets and food remain key sources of uncertainty likely to keep price growth elevated at 2. 6% this year. South Korea’s consumer price increases have remained well above the BOK’s 2% target in recent months, accelerating to the fastest pace in more than two years. As for financial markets, officials pledged to continue broad efforts to stabilize the won, while pressing ahead with reforms aimed at improving access to the currency. Measures include expanding offshore use of the won, extending support for banks’ foreign-currency funding and issuing additional sovereign foreign-currency bonds. Join the ConversationThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more aboutcookies here. By continuing to use our site, you agree to ourTerms of UseandPrivacy Policy.