The state-run Korea Development Institute(KDI) has maintained its economic growth outlook for this year at two-point-two percent as the rise in exports is growing despite a slowdown in the growth of consumption and investment.
The KDI's revised forecast for 2024 on Wednesday is higher than two-point-one percent projected by the Bank of Korea(BOK), but lower than two-point-three percent forecast by the International Monetary Fund(IMF).
The KDI said recovery in the semiconductor industry and the global economy will lead the country's economic growth this year, upgrading its outlook for export increases to four-point-seven percent from its previous projection of three-point-eight percent.
However, the KDI expects domestic consumption will slow down this year, lowering its growth outlook for private consumption to one-point-seven percent from one-point-eight percent.
The KDI cited geopolitical risks in the Middle East and the crisis in the Chinese real estate market as external risk factors for the South Korean economy this year.