Paris:The Organisation for Economic Cooperation and Development (OECD) has adjusted its 2026 economic growth forecast for South Korea, raising it to 3.7% due to the country's strong export performance.

According to Emirates News Agency, this new projection from the Paris-based organization is a significant 1.1 percentage-point increase from the 2.6% forecast in its June report. The OECD also forecasts that South Korea, Asia's fourth-largest economy, will grow by 2.6% in 2027, marking an increase of 0.7 percentage points from its previous estimate of 1.9%.

The Ministry of Finance and Economy highlighted that the OECD's revision represents the largest upward adjustment among the Group of 20 countries. The report indicated that robust exports and increasing production are expected to drive South Korea's economic growth, with a gradual recovery in consumption anticipated to continue into the following year.

The OECD also updated its inflation predictions for South Korea, projecting a 3% increase in consumer prices in 2026, which is 0.4 percentage points higher than earlier estimates. For 2027, the inflation rate is expected to be 2.7%, reflecting a 0.5 percentage-point rise from its previous forecast.