The Organisation for Economic Co-operation and Development has raised its 2026 growth forecast for Korea to 2.6%, up from 1.7% in March. Shown is the financial area of Yeouido in Seoul. (Seoul Tourism Organization)

By Margareth Theresia

The Organisation for Economic Co-operation and Development (OECD) has raised its 2026 growth forecast for Korea to 2.6%, up nine-tenths of a percentage point from March and the highest upward revision among the G20 group of leading economies.

The OECD on June 3 raised its projection for Korea from 1.7% in March to 2.6% in its economic outlook, while lowering its forecast for the world overall from 2.9% to 2.8%.

The global body said the expansion of exports led by semiconductors will propel Korea's growth and private investment, while consumption will maintain gradual recovery backed by fiscal policy.

Exports have shown a distinctive rise in both price and volume since early this year, while the increasing private investment centered on chips will spread investment growth to other sectors by year's end, it added.

The OECD, however, lowered its growth outlook for Korea next year from 2.1% in March to 1.9%.

Its March forecast of 1.7% reflected the influence of the conflict in the Middle East, and its revised projection this month was the largest upward revision for a G20 economy.

The OECD also mentioned pressure on the global economy due to soaring energy prices and trade disruptions caused by the blockade of the Strait of Hormuz. It thus lowered its 2026 forecast for the world economy to 2.8%.

Among leading economies, growth predictions for the U.S. (2%) and the eurozone (0.8%) remained the same as in March. That for Japan, however, fell three-tenths of a point to 0.6%.

margareth@korea.kr