South Korea raises 2026 growth forecast on chip export strength

The government lifted its 2026 outlook to 3% from 2%, citing a semiconductor “super cycle,” easing Middle East uncertainty and stronger exports.

Summary

South Korea raised its 2026 economic growth forecast to 3% from 2%, citing a semiconductor “super cycle,” easing Middle East uncertainty and stronger exports. The Finance Ministry’s updated outlook is above the 2.6% forecasts from the IMF, OECD and ADB. Vice Finance Minister Lee Hyoung-il said the reassessment was driven by the latest export data, underscoring the role of chip shipments in the outlook for Asia’s fourth-largest economy.

Terms & Concepts
  • semiconductor “super cycle”: an extended period of unusually strong chip demand, pricing and exports
  • exports: goods and services sold abroad that help drive economic growth