Containers stacked at central pier of Busan Port (Busan Port Authority)

By Koh Hyunjeong

The International Monetary Fund (IMF) has raised its growth forecast for the domestic economy this year to 3.3%, up from its previous figure of 2.6%.

The IMF also raised its projection for Korea next year from 2.5% to 2.8%.

The fund predicted that strong external demand driven primarily by semiconductors will offset the negative effects of the war in the Middle East.

Its forecast for the U.S. stayed the same at 2.3%, while those for the Eurozone (1.1%) and Japan (0.7%) saw hikes. That for China was cut to 4.5%.

Global inflation was expected to reach 4.7% this year and 4.1% next year.

hjkoh@korea.kr