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Korea: IMF Expects Economic Growth of 1.9%
The Ministry of Economy and Finance of Korea announced that the International Monetary Fund (IMF) slightly raised its economic growth forecast for the country for 2026 to 1.9% on Monday.
In its latest World Economic Outlook report, the IMF increased its forecast for Korea’s economic growth by 0.1 percentage points compared to its previous expectations issued in October.
The Ministry of Economy and Finance noted that the IMF has consistently raised its growth outlook for Korea since July of last year, indicating that the latest projections exceed the average growth forecast of 1.8% for advanced economies.
Overall, the IMF’s updated forecasts align with estimates from other major institutions and the Korean government.
Seoul anticipates a real GDP growth of 2% for the domestic economy this year, while the Bank of Korea projects a growth of 1.8%, and the Organisation for Economic Co-operation and Development anticipates a growth of 2.1%.
The IMF previously pointed out that Korea entered a recovery phase in the second half of last year, supported by more accommodative fiscal and monetary policies and improved consumer confidence, and the economy is expected to strengthen further this year.
However, the IMF cautioned in its latest report that risks to the global economy remain tilted to the downside.
The report highlighted key negative factors including concentrated investment in a few artificial intelligence and advanced technology firms, persistent high trade uncertainty, geopolitical tensions, and rising debt levels in major economies.
The IMF issues its economic outlook reports four times a year—in January, April, July, and October. April and October reports provide comprehensive forecasts for all member countries, while January and July reports focus on about 30 major economies, including Korea.
