KDI Lifts South Korea 2026 Growth Forecast to 3.2% as AI Chip Boom Accelerates
Updated
Updated · Bloomberg · Aug 23
KDI Lifts South Korea 2026 Growth Forecast to 3.2% as AI Chip Boom Accelerates
3 articles · Updated · Bloomberg · Aug 23
Summary
South Korea’s state-run Korea Development Institute raised its 2026 growth forecast to 3.2% from 2.5% in May, moving above the government’s already upbeat outlook.
AI-driven semiconductor demand prompted the upgrade, with KDI saying a stronger-than-expected global chip boom is boosting South Korean exports and investment and should spread through the broader economy.
The new forecast tops the government’s 3.0% projection and the IMF’s 2.6% estimate published last month, underscoring how sharply expectations have improved.
The revision highlights South Korea’s growing reliance on the global semiconductor cycle, with chip demand again shaping the country’s near-term economic trajectory.