BOK raises 2026 growth outlook to 1.8% as exports show strength
The Bank of Korea (BOK) on Thursday nudged its 2025 economic growth forecast for the country upward to 1 percent from 0.9 percent, and raised its 2026 projection to 1.8 percent from 1.6 percent, citing resilient exports and a gradual recovery in domestic demand. The improved growth outlook underpinned the central bank's decision to hold its benchmark rate at 2.5 percent in its final policy meeting of the year. Concerns over currency instability and housing market imbalances also persisted. The rate has remained on hold since May, marking the fourth consecutive pause. The interest rate gap with the U.S. now stands at 1.5 percentage points at the upper bound of the Federal Reserve’s policy rate. "Following the conclusion of Korea-U.S. trade negotiations and a robust global semiconductor cycle, growth in exports and facility investment is likely to exceed earlier expectations," BOK Gov. Rhee Chang-yong told reporters. "Expansionary fiscal policy and improving economic sentiment are also expected to accelerate the pace of recovery." The central bank now sees this year's current account sur
