South Korea growth outlook raised to 2.5%, KDI sees limited fiscal need

The Korea Development Institute raised its forecast for South Korea’s economic growth this year from 1.9% to 2.5%. KDI said the Korean economy has entered an expansion phase and explained that the semiconductor boom is offsetting the negative impact of the Middle East war. Employment data, however, showed signs of slowing. The number of employed people in April increased by 74,000, the smallest gain in one year and four months. With the growth outlook sharply upgraded, KDI assessed that the need for fiscal policy is not large at present. While the semiconductor-led recovery continues, the slowdown in employment is expected to remain a key variable in judging the economy ahead. Source: mk.co.kr