In a report, Bank of America economists stated that a more sustained chip growth cycle, driven by continued global AI investment, could further boost South Korea's GDP growth. They revised their 2026 and 2027 growth forecasts upward to 3.6% and 2.5%, respectively, from 3.1% and 2.2%. They anticipate the continued rise in the "chip surplus" will become a multi-year phenomenon. Spillover effects are already emerging, including increased investment in manufacturing and construction, increased tax revenue driving fiscal spending, and a wealth effect boosting consumption. Bank of America expects the Bank of Korea to raise interest rates by 25 basis points twice more, possibly in November 2026 and February 2027.
