OECD and ADB Raise Growth Forecasts for Korea Amid Geopolitical Risks
What happened
The Organization for Economic Cooperation and Development raised its 2026 economic growth forecast for Korea to 3.7 percent, up from the previous forecast of 2.6 percent. The Asian Development Bank also increased its growth projection for Korea to 3.2 percent. Both organizations attributed the upward revisions to strong industrial production, corporate earnings, and robust export growth, which was largely driven by the artificial intelligence boom.
From koreatimes.co.kr
Why it matters
The latest projection from the OECD represents the largest upward revision among the group of 20 major economies. However, analysts caution that the recovery of domestic demand is expected to lag behind the export rebound. Renewed risks include rising oil prices and weak domestic demand.
From koreatimes.co.kr
Who's involved
- KoreaNation whose economic outlook is being monitored and forecasted.
- Asian Development BankRegional development bank that monitors and projects the economic outlook of Korea.
- Organization for Economic Cooperation and DevelopmentIntergovernmental organization that monitors and forecasts the economic growth of Korea.
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The entities involved
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Korea
region in East Asia
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Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
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Asian Development Bank
regional development bank
- The Asian Development Bank has lifted its growth outlook for developing Asia and maintained its forecast for China at 4.6%, noting energy costs from the Middle East conflict.
- The Philippines is seeking international financial support from the World Bank and Asian Development Bank for its budget needs.
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Organization for Economic Cooperation and Development
intergovernmental economic organization
Related events
- OECD projects economic growth rates for G20 members, including Saudi Arabia and China.
- The ADB is closely monitoring the Philippine economy as it lags regional averages amid global oil price shocks driven by war.
- Geopolitical instability, driven by the Iran conflict, is impacting global markets, oil prices, and prompting monetary policy discussions in Tokyo.
- The Asian Development Bank monitors South Korea's economic performance closely due to global factors affecting its recovery.
- Tensions in the Middle East affect oil prices and global markets, leading to a rise in company stock values.