Seoul: The Organization for Economic Cooperation and Development (OECD) maintained its growth outlook for the South Korean economy at 1 percent this year, according to Seoul's finance ministry Tuesday. The OECD has forecasted that Asia's fourth-largest economy will grow by 2.2 percent next year, aligning with its previous projection made in June, according to the Ministry of Economy and Finance.
According to Yonhap News Agency, the latest projection from the OECD slightly exceeds the estimate provided by the Seoul government. The Bank of Korea (BOK) recently adjusted its 2025 economic growth forecast for the country to 0.9 percent, up from the initial prediction of 0.8 percent. This adjustment comes amid indications of a recovery in consumer spending and reduced uncertainties related to the United States' tariff policies.
The finance ministry noted that the OECD anticipates Korea's growth will accelerate next year, in contrast to other major economies, due to emerging signs of economic recovery. Preliminary data from the BOK, released earlier this month, shows that Korea's real gross domestic product (GDP) - a crucial indicator of economic growth - increased at a faster-than-expected rate of 0.7 percent during the April-June period compared to the previous quarter.
Furthermore, the OECD has raised its growth forecast for the global economy to 3.2 percent for this year, while keeping its 2026 forecast steady at 2.9 percent. The OECD has indicated that global trade uncertainties, primarily sparked by U.S. tariffs, are expected to contract investment and trade in the latter half of 2025.