Citi raises South Korea’s 2026、2027-year economic growth forecast, says chip boom may continue through 2028 year
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AT A GLANCE
Citi raised South Korea’s 2026 and 2027 growth forecasts and expects the chip-driven expansion to continue through 2028.
Article
Citigroup: Raises South Korea’s economic growth forecast; chip boom expected to support expansion through 2028 year
BlockBeats news,September 30, Citigroup economist Kim Jin-wook said that despite August a temporary slowdown in industrial production, South Korea’s economic growth is expected to be faster than previously forecast.
He noted that, due to August labor-management strikes and summer holidays, automobile production was temporarily disrupted, but the sector had September already begun to recover. Kim Jin-wook raised South Korea’s 2026 year GDP growth forecast by 0.1 percentage points to 3.8%, and raised the 2027 year forecast by 0.2 percentage points to 3.3%. He said the forecast upgrades were mainly based on the recovery in the automobile sector and the strong performance of manufacturing overall, driven by the semiconductor industry boom. Citigroup expects South Korea’s economic expansion, driven by the chip industry, to continue through 2028 year. (Jinshi)
Original link https://m.theblockbeats.info/flash/369679
Key points
01
Citi Group economist Kim Jin-wook said that South Korea’s economic growth is expected to be faster than previously forecast.
02
Kim Jin-wook raised South Korea’s 2026-year GDP growth forecast by 0.1 percentage points to 3.8%。
03
Kim Jin-wook will raise South Korea’s 2027-year GDP growth forecast by 0.2 percentage points to 3.3%。
04
The source text states that August labor strikes and summer holidays once affected automobile production; the industry in September has already seen a recovery.
05
Kim Jin-wook said the upward revision was based mainly on the recovery in the automobile industry, as well as strong overall manufacturing performance driven by the semiconductor industry boom.
06
Citi expects South Korea’s chip-driven economic expansion to continue through 2028.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Citi believes that the recovery in South Korea’s automobile production, together with strong performance in the semiconductor industry, will drive overall manufacturing and economic growth, and has therefore raised its forecast for growth over the next 2 years'GDP growth forecast.
Why it matters to readers
This reflects Citi’s greater optimism about South Korea’s manufacturing sector and economic growth outlook, with automobiles and semiconductors viewed as the main supporting factors.
GDP An upward revision to growth expectations indicates that forecasters are more optimistic about the pace of economic expansion; however, this remains an institutional forecast and does not mean that economic growth has already materialized.
Risks and unknowns
The content is BlockBeats’ summary of Citi economists’ views, with Jin10 cited as the source; Citi’s original report was not provided.
The forecast in the article has not yet materialized, and actual GDP growth in the future may differ from the forecast.
The article does not provide specific data on industrial production, automobile output, or semiconductor industry performance.
Whether the recovery in the automotive industry and the chip boom can continue until 2028 the year still cannot be confirmed from this article.
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