The Bank of Korea (BOK) on the 28th raised its forecast for this year's economic growth to 2.6% from 2%. It said exports and investment are expected to improve far more than initially projected as the semiconductor boom continues for a prolonged period.
The Bank of Korea (BOK) forecast is higher than those of the Korea Development Institute (KDI) at 2.5%, the International Monetary Fund (IMF) at 1.9%, and the Organization for Economic Cooperation and Development (OECD) at 1.7%.
That day, the Bank of Korea (BOK) in its "Economic Outlook" said it would raise this year's growth forecast to 2.6% from 2.0% and also revise up next year's forecast to 2.1% from 1.8%. The Bank of Korea (BOK) kept the base rate unchanged at 2.5% per year that day, and in the monetary policy stance it released said, "With robust exports and increased investment led by semiconductors, along with a solid consumption trend, the growth momentum has expanded significantly."
The Bank of Korea (BOK) also expected inflation concerns to grow. It raised this year's consumer price inflation forecast to 2.7% from 2.2%. It also lifted next year's forecast to 2.3% from 2.0%. The Bank of Korea (BOK) said, "As the pass-through effects of higher global oil prices broaden and demand-side pressures from income gains gradually build, the upward trend in prices will expand somewhat further."