S. Korea’s economy likely to beat expectations in ’24

South Korea’s economy is projected to experience a stronger-than-expected growth rate of 2.4 per cent in 2024, according to the latest forecast from Bank of Korea (BOK). This upward revision from the previous estimate of 2.1 per cent in February.

In the second quarter, the growth rate decreased to -0.2 per cent from 1.3 per cent in the previous quarter due to a base effect. However, the economy is expected to pick up in the third quarter with strong exports and improving domestic demand.

Exports are projected to grow faster than previously forecasted, driven by the IT sector and rising foreign tourist arrivals.

Domestic demand is expected to pick up due to increased corporate investment and progress in reducing inflation. However, the growth momentum may be slightly lower than initially anticipated.

Attribution: Bank of Korea report

Subediting: M. S. Salama