Korea’s economic growth resumes on back of rising chip exports: OECD

Samsung Electronics Chairman Lee Jae-yong, center, inspects a chip production line at the company's plant in Cheonan, South Chungcheong Province, Feb. 17, 2023. Courtesy of Samsung Electronics

Korea’s economic growth has resumed after overcoming a temporary slowdown caused by high global prices and sluggish exports following the end of the COVID-19 pandemic, the Organization for Economic Cooperation and Development (OECD) said, Thursday.

In its report, “OECD Economic Surveys: Korea 2024,” the organization attributed the country’s strengthened growth largely to the strong global demand for semiconductors.

The OECD also projected private consumption in Korea to recover starting in the second half of this year, despite high inflation and soaring interest rates.

Based on these assessments, the OECD maintained its growth outlook for Korea at 2.6 percent for this year, the same projection it made in May. At that time, the organization 대표하는 had notably revised the outlook up by 0.4 percentage point from its previous projection of 2.2 percent made in February.

Inflation in Korea was forecast at 2.5 percent, down 0.1 percentage point from the May projection.

“Growth has strengthened after a soft patch, largely reflecting the fortunes of semiconductor exports,” the OECD said in the report.

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