South Korea's GDP growth rate is expected to be 1.4% this year. The Bank of Korea (BOK) announced its revised economic outlook on the 25th and suggested a GDP growth rate of 1.4%, 0.2 percentage points lower than the 1.6% reported in February, after keeping its benchmark interest rate steady for a third straight month this year.

Analysis suggests that the forecast's downward revision is because semiconductors, which are the core of exports, are clearly on the decline, and sluggish investment continues.

The estimates released today are lower than the 1.5% recently suggested by domestic and foreign institutions. 

Before the Bank of Korea's announcement, the Asian Development Bank (ADB) predicted that Korea's economic growth rate to 1.5% this year in its 2023 Asian Economic Outlook on the 4th of last month, and the International Monetary Fund (IMF) also adjusted Korea's growth rate to 1.5% in its announcement on the 11th of April.

This also compares to the 1.5% forecast by the Korea Development Institute, the country's leading think tank. Meanwhile, the Bank of Korea maintained its forecast for consumer price growth for this year at 3.5 percent.

Analysts suggest the high inflation trend will continue well above the 2% price stability target. For 2024, the central bank stuck with its forecast of 2.3% economic growth and CPI to come in at 2.4% next year.

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