Anchor lead: The nation’s economy is expected to grow two-point-two percent this year, backed by a rise in exports of items like semiconductors. Still, the government says sluggish domestic consumption and investment will likely limit further growth.
Koo Heejin brings us the details.

Report: The Finance Ministry on Thursday said while growth stood at one-point-four percent last year, the economy, centered on exports, is likely to expand two-point-two percent this year.

The forecast, published in its 2024 economic policy directive, matches that of the International Monetary Fund(IMF) and is higher than the Bank of Korea's(BOK) two-point-one-percent projection issued in November. 

Exports are expected to jump eight-point-five percent on-year in 2024, largely thanks to improvements in the global chip sector. Imports are projected to rise four percent year-on-year, with a current account surplus of around 50 billion U.S. dollars. 

The government has pledged to help boost exports by offering record trade financing of 355 trillion won, or some 271 billion U.S. dollars, this year. It also plans to introduce a trade settlement mechanism using the Korean won, rather than U.S. dollars, for the first time ever.

Still, private spending and investment in the construction sector are expected to see a slump, with spending likely to only rise one-point-eight percent, affected by real income reduction from inflation and high interests.

Facilities investments are predicted to increase three percent, while construction investments are forecast to drop one-point-two percent due to a slowdown in the housing market.

Inflation is expected to slow this year to two-point-six percent, down a percentage point from last year.