The South Korean central bank on Thursday raised to 2 percent its growth forecast for the local economy this year, citing strong exports and a recovery in private consumption.
The revision by the Bank of Korea represents a 0.2 percentage-point increase from its previous forecast of a 1.8 percent expansion issued in November.
The revised outlook aligns with the government's growth forecast, while being slightly more optimistic than the 1.9 percent projections by the International Monetary Fund and the Korea Development Institute.
The Organization for Economic Cooperation and Development expects a 2.2 percent expansion, while eight major global investment banks, including Citi, UBS and Nomura, forecast an average growth of 2.1 percent this year.
Reflecting the upbeat outlook, the BOK kept the key interest rate unchanged at 2.5 percent, emphasizing financial stability amid housing market volatility and a weakened local currency.
For 2027, the central bank lowered its growth forecast to 1.8 percent from the previous projection of 1.9 percent, reflecting a base effect from this year's raised growth estimate.
Meanwhile, the BOK revised up its consumer price inflation forecast, increasing this year's estimate to 2.2 percent from 2.1 percent amid rising global oil prices driven by geopolitical risks. (Yonhap)
