The Korea Development Institute on Aug. 19 raised its forecast for the country's economic growth this year from 2.5% to 3.2% in a revised outlook. Shown is the Yeouido neighborhood of Seoul's Yeongdeungpo-gu District. (Seoul Tourism Organization)

By Jeong Euiseok

The Korea Development Institute (KDI) has raised its forecast for the country's economic growth this year seven-tenths of a percentage point just three months after its last projection.

In a revised economic outlook released on Aug. 19, the KDI raised its prediction from 2.5% made in May to 3.2% due to growth driven by the global semiconductor boom.

The report projected that private consumption, a key indicator of domestic demand, will grow 2.3% this year and 2% next year thanks to a rise in real gross income.

Facility investment was seen to increase 7.9% this year and 7% next year primarily driven by chips amid growing global investment in artificial intelligence infrastructure.

The KDI added that the current account balance will post a big surplus of around USD 360 billion this year and the next, driven by a surge in semiconductor exports.

Consumer inflation will reach a relatively high 2.7% amid rising global oil prices and signs of economic recovery, but fall to around 2.2% next year as such prices stabilize.

The report also raised the KDI's growth forecast for next year from 1.7% to 2.2% under the expectation that the economy will maintain a favorable trajectory.

innocence@korea.kr