{
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    "date": "2026-04-02T09:11:23",
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        "rendered": "South Korea: Growth outlook supported by chips and fiscal boost \u2013 ING"
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        "rendered": "<div id=\"post-content-section\">\n<p>ING economist Min Joo Kang highlights that South Korea\u2019s 1Q26 <a href=\"https:\/\/www.fxstreet.com\/economic-calendar\" data-fxs-autoanchor>GDP<\/a> is set to rebound on strong chip-led exports and recovering investment, but trims the 2026 GDP forecast to 2.0% from 2.2%. She notes rising downside risks from supply disruptions and higher energy prices, partly offset by a sizeable supplementary budget and resilient external demand.<\/p>\n<h2>Chip strength offsets rising headwinds<\/h2>\n<p>&#8220;If supply disruptions persist, adverse effects could become evident in the second half of 2026. Given Korea\u2019s high dependence on chips for growth, negative impacts could intensify later this year.&#8221;<\/p>\n<p>&#8220;The extra budget will lift government spending in 2026 to 752.1 trillion won, an 11.8% year-on-year increase, projected to raise GDP by 0.2 percentage points. Both parties agreed to approve the bill by 10 April.&#8221;<\/p>\n<p>&#8220;Thus, we expect growth to decelerate to 0.2% QoQ but to avoid a contraction in 2Q26. Along with trimming down the 2Q26 and 3Q26 GDP, we have lowered our 2026 GDP <a href=\"https:\/\/www.fxstreet.com\/rates-charts\/forecast\" data-fxs-autoanchor>outlook<\/a> from 2.2% YoY to 2.0%.&#8221;<\/p>\n<p>&#8220;Higher energy prices for longer and supplementary budget measures could increase upward inflation risks in coming months. If we are right about the resilience of the economy and a higher-inflation path, then the Bank of Korea&#8217;s policy focus will be on inflation stabilisation and financial stability.&#8221;<\/p>\n<p>&#8220;We expect strong demand for AI and memory chips to continue, with no significant signs of a slowdown in AI investment globally. But clearly, this is likely to add to inflationary pressures on IT goods globally \u2013 and, eventually, more burdens for consumers.&#8221;<\/p>\n<p><em>(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)<\/em><\/p>\n<\/div>",
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        "rendered": "<p>ING economist Min Joo Kang highlights that South Korea\u2019s 1Q26 GDP is set to rebound on strong chip-led exports and [&hellip;]<\/p>",
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