Bank of Korea raises 2024 growth forecast to 2.6% on strong exports

The Bank of Korea significantly boosted its economic growth forecast for South Korea, projecting a 2.6% expansion in real Gross Domestic Product (GDP) for 2024. This upward revision marks a substantial increase from the 2.0% forecast issued in February.

The central bank attributed the more optimistic outlook to a robust export recovery, which has proven stronger than initially anticipated. This surge is largely fueled by the rebound in the semiconductor industry and increased corporate investment in artificial intelligence (AI) infrastructure. These factors are helping to offset a slowdown in domestic demand.

Alongside the upward revision for 2024, the Bank of Korea also adjusted its growth forecast for 2025, raising it from 1.8% to 2.1%. This move signals growing confidence in the nation's economic trajectory.

This positive assessment aligns with trends observed by other major financial institutions. The Korea Development Institute (KDI) recently revised its growth forecast to 2.5%. International banks like JP Morgan, Citibank, and Goldman Sachs have also increased their projections for South Korea's economic growth, reflecting a broader consensus on the country's improving economic performance.