South Korea's Ministry of Economy and Finance said on Tuesday it has raised its 2026 GDP forecast to 3.0% from a January projection of 2.0%, citing strong semiconductor exports and fiscal stimulus including a supplementary budget to offset Middle East conflict shocks. Last year’s growth was 1.1%. The ministry now expects average consumer inflation in 2026 of 2.6%, up from 2.1% previously; it sees H2 inflation easing if geopolitical tensions ease and oil falls, but flags upside risk from fragile

South Korea's Ministry of Economy and Finance said on Tuesday it has raised its 2026 GDP forecast to 3.0% from a January projection of 2.0%, citing strong semiconductor exports and fiscal stimulus including a supplementary budget to offset Middle East conflict shocks. Last year’s growth was 1.1%. The ministry now expects average consumer inflation in 2026 of 2.6%, up from 2.1% previously; it sees H2 inflation easing if geopolitical tensions ease and oil falls, but flags upside risk from fragile Middle East peace and weather-driven energy and agricultural price volatility. It projects 2027 GDP and inflation at 2.2% each. Exports remain the main growth driver on sustained chip demand. The ministry forecasts a record 2026 current-account surplus of $290bn, well above its prior $135bn estimate.