South Korea's Economy Poised for Goldilocks State, Citi Forecasts 2.2% GDP Growth in 2026
Deep News
Nov 13
Citigroup economist Kim Jin-wook stated in a recent report that South Korea's economy may enter a 'Goldilocks' state by 2026—achieving a balance between overheating and stagnation—supported by strong semiconductor exports and subdued energy prices.
Kim projected that South Korea's GDP could grow by 2.2% in 2026, slightly above the potential growth rate estimate of 1.8%, while inflation may stabilize at an average of 1.8%, below the Bank of Korea's 2% target. "This ideal scenario would provide ample room for the government to implement market-driven financial and industrial policies," the report noted.
Additionally, Citigroup raised its target for South Korea's benchmark KOSPI index from 3,700 to 5,500 points.
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