SEJONG – The International Monetary Fund (IMF) has projected a steady growth trajectory for South Korea's economy, estimating a range between 2.1 percent and 2.3 percent annually until 2028.
According to Yonhap News Agency, released on Sunday, the country's real gross domestic product (GDP) is expected to rise to 2.2 percent in 2024, up from a forecasted growth of 1.4 percent this year. The IMF anticipates the GDP to grow by 2.3 percent in 2025, followed by 2.2 percent increases in both 2026 and 2027, and a growth of 2.1 percent in 2028. These projections, however, do not factor in variables associated with China's economic recovery.
The IMF also estimated South Korea's potential output rate, which is the maximum growth a country can achieve without causing inflation, to be 2.1 percent for this year, 2.2 percent for 2024 and 2025, and then stabilizing at 2.1 percent from 2026 to 2028.
In terms of inflation, the IMF revised its forecast for South Korea upward, from 3.4 percent to 3.6 percent for this year, and from 2.3 percent to 2.4 percent for the next year.
The report commended the resilience of the South Korean economy, supported by effective policy responses from the authorities. However, it emphasized the need for structural reforms to boost productivity growth, especially in the face of demographic challenges.