An economic surveillance organization in Asia, the ASEAN+3 Macroeconomic Research Office, has forecasted that the South Korean economy will grow by 2.1 percent in 2025. The organization made this assessment based on the expectation of increased exports, particularly in the semiconductor sector. The Ministry of Economy and Finance in Seoul highlighted how the recovery of the semiconductor industry has been driving export growth and overall economic expansion in South Korea.
After experiencing a modest 1.4 percent growth in the previous year due to a global economic slowdown, South Korea’s economy is expected to see a more substantial growth rate of 2.3 percent this year. The organization also predicted a lower inflation rate of 2.5 percent for 2024 compared to 3.6 percent in 2023, with further moderation expected in 2025 to 2 percent. However, officials noted that the pace of inflation decrease has been slower than anticipated due to factors like high oil and fresh food prices.
Looking at the broader region, the ASEAN+3 countries are projected to achieve economic growth rates of 4.5 percent in 2024 and 4.2 percent in