Citigroup says that despite a temporary slowdown in industrial production in August—partly from labor strikes and summer holidays that briefly halted auto output—South Korea’s growth should exceed prior projections. Citigroup raised its 2026 GDP forecast by 0.1 percentage point to 3.8% and its 2027 forecast by 0.2 percentage point to 3.3%, citing an auto-sector rebound in September and broad manufacturing strength driven by a semiconductor upcycle. Citigroup expects chip-led expansion to underpi

Citigroup says that despite a temporary slowdown in industrial production in August—partly from labor strikes and summer holidays that briefly halted auto output—South Korea’s growth should exceed prior projections. Citigroup raised its 2026 GDP forecast by 0.1 percentage point to 3.8% and its 2027 forecast by 0.2 percentage point to 3.3%, citing an auto-sector rebound in September and broad manufacturing strength driven by a semiconductor upcycle. Citigroup expects chip-led expansion to underpin South Korea’s economy through 2028.