IMF Raises South Korea 2026 Growth Forecast to 2.6%

The International Monetary Fund revised South Korea's economic growth forecast for 2026 upward to 2.6%, increasing the projection from 1.9% in April. This 0.7 percentage point revision places South Korea's growth above that of other advanced economies, including the United States at 2.3%. The IMF projects growth for South Korea will settle at 2.5% in 2027.

The upward revision is driven by robust global demand for memory chips and AI-related hardware. These factors have offset economic headwinds caused by conflicts involving Iran, Israel, and the United States. The IMF identified South Korea as one of the top four net exporters of AI hardware, alongside Malaysia, Thailand, and Taiwan.

Other financial institutions and government bodies have aligned with this outlook. The Bank of Korea and the Organisation for Economic Co-operation and Development both match the 2.6% projection, and the Asian Development Bank issued a similar upward revision on July 10. The Ministry of Finance and Economy of South Korea stated that these figures reflect the continuing momentum in the semiconductor and AI sectors.