SEOUL, Aug. 19 (Xinhua) -- A South Korean think tank on Wednesday revised up this year's growth outlook for the Asian country by 0.7 percentage points to 3.2 percent, reflecting a booming global semiconductor market.
The revision, up from a growth of 2.5 percent estimated three months earlier, was driven by stronger-than-expected global demand for chips, according to the Korea Development Institute (KDI).
The real gross domestic product (GDP), adjusted for inflation, was forecast to grow 2.2 percent in 2027, higher than an expansion of 1.7 percent estimated in May.
Despite lingering external headwinds such as U.S. tariff measures and instability in the Middle East, exports in terms of volume were projected to increase 8.6 percent in 2026 and 4.9 percent in 2027 amid robust global investments in artificial intelligence (AI) infrastructure.
It marked an upward revision of 4.1 percentage points for this year and 3.1 percentage points for next year.
Facility investment was poised to jump 7.9 percent in 2026 and 7.0 percent in 2027, fueled by the expanding global AI infrastructure.
Construction investment was expected to see a meager 0.1 percent growth this year, owing to a sluggish real estate market and rising construction costs, before expanding 2.7 percent next year, thanks to a recent rise in factory and warehouse construction orders alongside major tech firms unveiling semiconductor plant expansions.
Private consumption was predicted to climb 2.3 percent in 2026 and 2.0 percent in 2027, supported by an increase in real gross income.
Outlook for current account surplus reached about 360 billion U.S. dollars for both 2026 and 2027.
Consumer price inflation forecasts were set at 2.7 percent for this year and 2.2 percent for next year. ■