IMF projects the South Korean economy to grow 2.1–2.3 percent between 2024 and 2028.

Sejong, Nov. 19 (BNA): South Korea’s economy is expected to maintain a growth trajectory ranging between 2.1 percent and 2.3 percent until 2028, a report from the International Monetary Fund (IMF) showed Sunday.

 

According to its annual Article IV consultation report for South Korea, the IMF predicted South Korea’s real gross domestic product (GDP) rate to reach 2.2 percent in 2024 from a projected 1.4 percent growth this year, Yonhap reported.

 

The IMF forecast South Korea’s GDP to grow 2.3 percent in 2025, followed by 2.2 percent increases both in 2026 and 2027. The Washington-based lender expected 2.1 percent GDP growth in 2028.

 

Further, the IMF has estimated South Korea’s potential output rate to reach 2.1 percent this year, 2.2 percent for both 2024 and 2025, and 2.1 percent for 2026 to 2028.

 

Potential output refers to the maximum growth rate a country can achieve by mobilising all factors of production, including labour, capital, and resources, without causing inflation.

 

The IMF’s inflation forecast for South Korea has been revised upward from the previous 3.4 percent to 3.6 percent for this year. Additionally, the forecast for next year has been adjusted upward from the initial 2.3 percent to 2.4 percent.

 

JA