Rise in exports to deliver economic growth, Finance Ministry reports

Automobiles for exports are parked at a container yard in Pyeongtaek-Dangjin Port. [NEWS1]

An Asian economic research organization expects the Korean economy to expand by 2.3 percent this year on the back of rising exports, Seoul’s Finance Ministry said Monday.

The Asean+3 Macroeconomic Research Office (AMRO) made the assessment in its regional report, noting that the recovery of the semiconductor sector will boost exports and lead overall economic growth, according to the Ministry of Economy and Finance.

Last year, the Korean economy expanded 1.4 percent amid a global economic slowdown, but exports, a key growth engine, have been rising after a year-long downturn since the end of 2023, as the chip sector has made a turnaround.

The country is forecast to log lower growth of 2.1 percent in 2025, AMRO said.

The organization expected Korea’s inflation to reach 2.5 percent this year, compared with 3.6 percent in 2023, before falling to 2 percent in 2025.

Inflation has been moderating, but officials have said that the pace has been slower than earlier expected due to high oil and fresh food prices.

Yonhap