According to the ASEAN+3 Macroeconomic Research Office (AMRO), South Korea’s economy is expected to grow by 2.3 percent this year, driven by the recovery of the semiconductor sector. This growth is expected to increase exports and drive overall economic growth. Despite a global economic slowdown, South Korea’s economy expanded by 1.4 percent last year due to its key growth driver, exports, increasing following a downturn in the chip sector since the end of 2023.
Inflation in South Korea is projected to reach 2.5 percent this year, down from 3.6 percent in 2023. However, high oil and fresh food prices have caused a slower pace of decrease than expected. AMRO forecasts that South Korea will see lower growth of 2.1 percent in 2025 as inflation decreases further to 2 percent.
The ASEAN countries plus South Korea, Japan, and China are anticipated to achieve economic growth of 4.5 percent in 2024 and 4.2 percent in 2025, driven by the recovery of the tourism sector and increasing domestic demand. Inflation for the bloc is predicted to reach 4.3 percent this year and 3.7 percent in 2025.
AMRO highlights uncertainties in the regional economy, including geopolitical risks, higher raw material prices, and the slow recovery of the Chinese economy. Long-term risks such as an aging population, climate changes, and geopolitical issues are also mentioned. Most countries in the region have adopted tight or neutral monetary stances to address high inflation rates
