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Korea Economic Research Institute Forecasts South Korean Economy to Grow by 2.7%

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The South Korean economy is expected to grow by 2.7% this year against a 1.1% growth recorded a year ago, driven by strong semiconductor exports, according to a report by Pulse on Thursday, quoting a forecast presented at a seminar hosted by the Korea Economic Research Institute.

The presentation showed that if the expectation is met, then the economy would surpass its estimated 2% potential growth rate for the first time in two years.

KERI projected Korea's current account surplus could reach a record $225 billion this year. While there is an expectation that the easing of tensions in the Middle East will ease pressure on oil prices, inflation, and the exchange rate, consumer inflation is still likely to rise to 2.7% this year.

As per the report, the domestic demand is expected to remain weak. Private consumption is estimated to grow 2% and construction investment 0.5%.

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