South Korea Development Institute (KDI) raised its 2026 GDP growth forecast to
3.2% from 2.5% in May, citing strong global chip demand and AI-driven spillovers
to the domestic economy. The projection exceeds the government’s 3.0% estimate
and the IMF’s 2.6% forecast. KDI said expansion since H2 last year should
continue as AI demand supports semiconductor exports, offsetting higher import
costs from the Middle East war. KDI expects exports to rise 8.7% this year and
5.0% next year and is assessing how long elevated AI demand will persist.
