Seoul: The South Korean central bank announced a revision to its growth forecast for the national economy this year, increasing it to 2 percent. This adjustment is attributed to robust export performance and a recovery in private consumption.

According to Yonhap News Agency, the Bank of Korea's (BOK) new forecast marks a 0.2 percentage-point increase from its previous projection of a 1.8 percent expansion, which was issued in November. This updated outlook aligns with the government's forecast and is slightly more optimistic compared to the 1.9 percent growth projections made by the International Monetary Fund (IMF) and the Korea Development Institute (KDI).

The Organization for Economic Cooperation and Development (OECD) anticipates a 2.2 percent growth, while eight major global investment banks, including Citi, UBS, and Nomura, have forecasted an average growth rate of 2.1 percent for the year. In light of this positive outlook, the BOK has decided to maintain the key interest rate at 2.5 percent, focusing on ensuring financial stability amid fluctuations in the housing market and a weakened local currency.

Looking ahead to 2027, the BOK has lowered its growth forecast slightly to 1.8 percent from the previous estimate of 1.9 percent, reflecting the base effect from this year's revised growth estimate. Additionally, the central bank has adjusted its consumer price inflation forecast for the year, raising it to 2.2 percent from 2.1 percent. This change is attributed to rising global oil prices influenced by geopolitical risks.