By Kwanwoo Jun
South Korea's government has raised its gross domestic product forecast for this year, reflecting brisk exports and solid growth in the first quarter.
Asia's fourth-largest economy is forecast to expand 2.6% in 2024, compared with a projection in January for 2.2% growth, the Ministry of Economy and Finance said in a semiannual outlook released Wednesday.
The ministry expects the country's headline inflation to average 2.6% in 2024, unchanged from its earlier estimate.
Stronger-than-expected GDP growth for the January-March quarter and robust exports recently led the government to upgrade its growth outlook, according to the ministry.
South Korea's economy grew a revised 3.3% in the first three months of 2024 compared with the year-earlier period, following a revised 2.1% expansion in the prior quarter.
Exports increased for a ninth consecutive month in June on strong demand for computer chips fueled by the artificial-intelligence boom.
The ministry now estimates the country's 2024 trade surplus at $63 billion, up sharply from its earlier estimate of $50 billion.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
07-02-24 2344ET
