South Korea's growth outlook sees first back-to-back rise in four decades

The International Monetary Fund recently revised its outlook for South Korea, raising the projected potential growth rate to 2.14% for one outlet year and 2.2% for 2027. This adjustment represents the first instance of consecutive annual increases in roughly four decades. President Lee Jae Myung responded on his X account, describing the revision as a "dramatic rebound" in the country's basic economic strength.

He recalled that the previous back-to-back rise occurred in the late 1980s, driven by low oil prices, low interest rates and a strong won against the dollar. Lee emphasized the need to maintain this trajectory and to distribute the resulting gains fairly across society. The announcement underscores a positive shift in South Korea's long-term growth prospects.