The Organisation for Economic Co-operation and Development projected South Korea's economy will grow 3.7% this year, raising its forecast by 1.1 percentage points from June in the largest upgrade among the Group of 20 economies.
The revision came in the OECD's interim economic outlook released on the 23rd. The organization had forecast growth of 1.7% for the country as recently as March, then lifted it to 2.6% in June before raising it again to 3.7% in September.
The upgrade reflects exports and output growing faster than expected on the back of an artificial intelligence-driven semiconductor boom. The OECD said strong export and production growth will drive the economy this year, followed by a gradual recovery in consumption next year. It raised its global growth forecast for this year to 2.9%, up 0.1 percentage point from its previous projection. The forecast for the U.S. was lifted to 2.2% from 2.0% and Japan's to 0.8% from 0.6%, while China's was kept at 4.5%.
