S. Korea's 2024 economic recovery adjusted upward to 2.6% on rising exports: KDI

KDI, 수출이 급증으로 올해 성장률 전망 2.6%로 상향… 내년에는 2.1%

Korea's economic growth for this year has been revised upward amid tangible global demand for chips.
Our correspondent Lee Soo-jin covers this latest projection by the KDI.

A South Korean state-run economic think tank expects higher economic growth on the back of rising exports.
In its outlook published on Thursday, the Korea Development Institute forecast the economy to grow by 2-point-6 percent this year.
That's up from its previous forecast of 2-point-2 percent released in February, an estimate that was unchanged from its November 2023 report.
This upward adjustment comes as exports have shown a recovery led by the strong demand for semiconductors.
Preliminary data released by the Bank of Korea on Tuesday showed that the nation's export price index was up by 4-point-1 percent on-month in April, rising for the fourth consecutive month.
And compared to a year ago, it jumped 6-point-2 percent.
But despite the rise in exports, concerns remain about sluggish consumption as consumer prices remain high.
The think tank is forecasting that consumer prices will go up 2-point-6 percent this year.
April was the first time since January that the consumer price index ---a key gauge of inflation ----fell below three percent after consumer prices saw on-year increases of 3-point-1 percent in February and March.
And while the downturn in domestic demand is expected to ease next year, the economy is expected to grow at a slightly lower rate of 2-point-1 percent as the rise in exports slow.

"Exports of goods rose 5-point-3 percent in 2024 on the back of increased demand for chips and while this trend is largely expected to continue, export growth is being estimated to be adjusted down to 2-point-3 percent."

But consumer prices are expected to fall to 2-point-1 percent in 2025, close to the Bank of Korea's target inflation of 2 percent.
However, if the global economy does not show the same steady growth it saw in 2023, then domestic economic growth could be limited.
The International Monetary Fund is forecasting the global economy to grow 3-point-2 percent both this year and next year.
The report also added that other external factors such as hikes in international oil prices due to geopolitical tensions and China's sluggish real estate market may impact South Korea's economy.
Lee Soo-jin, Arirang News.

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2024-05-16, 18:00 (KST)

Видео S. Korea's 2024 economic recovery adjusted upward to 2.6% on rising exports: KDI канала Arirang News