OECD and ADB Raise South Korea 2026 Growth Forecasts

The Organisation for Economic Co-operation and Development (OECD) and the Asian Development Bank (ADB) both raised South Korea's economic growth forecasts for 2026, citing a surge in exports and production. The OECD increased its projection to 3.7 percent, a 1.1 percentage-point jump from its June estimate of 2.6 percent. The ADB raised its forecast to 3.2 percent, up from 2.6 percent in July, attributing the gain to corporate earnings and demand for AI chips fueled by the global artificial intelligence boom.

These updates align with a 3.2 percent projection from the Korea Development Institute and exceed a July estimate of 3 percent from the Ministry of Finance and Economy. The OECD further projected a 2.6 percent increase for 2027, while the ADB forecast 2.3 percent for the same period.

Inflation expectations varied between the organizations. The OECD raised its consumer price forecasts to 3 percent for 2026 and 2.7 percent for 2027. The ADB maintained its 2026 inflation forecast at 2.7 percent but warned that geopolitical tensions, global market volatility, and U.S. tariff hikes could threaten future investment and exports.