Jun Ji-hye, a reporter at the finance desk of The Korea Times, focuses primarily on economic policy and government agencies, mainly covering the Ministry of Finance and Economy, the Ministry of Budget and Planning, the National Tax Service and the Korea Customs Service. She previously covered financial authorities, including the Financial Services Commission and the Financial Supervisory Service, and earlier worked on the political, city and business desks, reporting on a wide range of issues.
IMF lifts Korea's growth outlook to 2.6%, biggest upgrade among 30 major economies
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By Jun Ji-hye
The International Monetary Fund (IMF) on Wednesday raised its forecast for Korea’s economic growth this year to 2.6 percent, up 0.7 percentage point from its April projection, marking the largest upward revision among the 30 major economies covered in its latest outlook.
The IMF said stronger exports of semiconductors and artificial intelligence (AI)-related goods helped Seoul offset the impact of the conflict in the Middle East.
In its July World Economic Outlook Update, the IMF lowered its global growth forecast for 2026 by 0.1 percentage point from April to 3 percent. In contrast, it raised Korea’s growth outlook by 0.7 percentage point to 2.6 percent for this year and by 0.4 percentage point to 2.5 percent for 2027.
The IMF said the global economy is being shaped by two major forces — supply disruptions linked to the Middle East conflict and growth driven by the AI technology cycle.
Korea was assessed as maintaining a relatively strong outlook due to steady external demand for semiconductors and strong exports of AI-related hardware. In particular, the fund identified Korea as one of the world’s four leading net exporters of AI hardware, along with Taiwan, Thailand and Malaysia.
“The additional upward revision to the 2027 growth forecast, following the increase for 2026, suggests that Korea’s semiconductor and AI-related growth momentum could continue into next year,” a Ministry of Finance and Economy official said.
The IMF, however, warned of risks from geopolitical tensions in the Middle East, growing trade fragmentation and limited policy room in some economies. It recommended that monetary policy continue to focus on price stability while governments provide targeted and temporary support for vulnerable groups.
In response, the finance ministry said the government would focus on stabilizing prices, supporting employment among young people and other vulnerable groups, reducing economic polarization and responding to industrial changes.
“The government will also pursue structural reforms to strengthen the economy’s long-term growth potential,” the official said.