The government expects the country’s economy to grow two percent this year.

The Ministry of Economy and Finance delivered its prediction for the gross domestic product(GDP) in its 2026 growth strategy report, released Friday, forecasting a figure that is exactly double its provisional growth rate for last year.

By comparison, the Bank of Korea and the state-run Korea Development Institute share a GDP growth outlook of one-point-eight percent for 2026.

The ministry expects investment and consumption to improve on the back of soaring stocks and policy effects and foresees an increase in outbound shipments amid an upswing in semiconductors.

Despite upward adjustment factors such as improved domestic demand, the report suggests inflation will post two-point-one percent, the same as last year, due to falling global oil prices.

It mentioned the foreign exchange rate, uncertainties in the domestic real estate market and household debt as risk factors.