Citigroup raises South Korea's economic growth forecast, with the chip boom expected to underpin the expansion through 2028.
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Citigroup economist Kim Jin-wook said that despite a temporary slowdown in industrial production in August, South Korea’s economic growth is projected to outpace earlier forecasts. He noted that auto production was temporarily disrupted in August due to labor strikes and summer holidays, but the sector has recovered in September. Kim Jin-wook raised South Korea’s 2026 GDP growth forecast by 0.1 percentage points to 3.8%, and lifted the 2027 forecast by 0.2 percentage points to 3.3%. He attributed the upward revisions primarily to the recovery of the auto sector and robust overall manufacturing performance driven by the semiconductor industry boom. Citigroup forecasts that South Korea’s economic expansion, fueled by the chip industry, will persist through 2028. (Source: Jin10)
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