Seoul: The central bank on Thursday raised its economic growth forecast for South Korea to 2.6 percent for 2026 amid solid exports driven by a semiconductor supercycle. The revision by the Bank of Korea (BOK) represents a 0.6 percentage-point increase from its previous forecast of 2 percent issued in February.

According to Yonhap News Agency, the BOK has also set its growth outlook for 2027 at 2.1 percent. This adjustment comes as the South Korean economy showed significant performance in the first quarter, achieving a growth rate of 1.7 percent, which is noted as the sharpest quarterly growth in 5 1/2 years.

The upward revision and positive outlook are largely attributed to the strong performance in semiconductor exports, a crucial sector for South Korea's economy. The ongoing semiconductor supercycle has contributed significantly to this favorable economic forecast, reflecting the central bank's confidence in the sustained demand for South Korean semiconductor products.