S. Korean economy to grow 2.3% in 2024: AMRO

The ASEAN+3 Macroeconomic Research Office (AMRO), an economic surveillance organization based in Singapore that focuses on the economies of its member countries including South Korea, China, Japan, and the ten member states of the Association of Southeast Asian Nations (ASEAN), has forecasted that the South Korean economy will grow by 2.3% in 2024. This prediction was announced by South Korea's Ministry of Economy and Finance on Monday, March 13, 2023.

The anticipated growth is attributed to a rebound in exports, which is expected to lead the overall economic expansion. The semiconductor sector is specifically identified as a key driver of this growth. The semiconductor industry is a significant contributor to South Korea's economy, with major companies such as Samsung Electronics and SK Hynix being global leaders in semiconductor production.

The growth projection comes after the South Korean economy expanded by 1.4% in 2023, which was a modest recovery from the contraction experienced in the previous year when it shrank by 1.1%. The global economic slowdown brought about by the COVID-19 pandemic was a major factor in the subpar growth performance of the South Korean economy during that period.

The AMRO's assessment of a 2.3% growth rate for the South Korean economy in 2024 is a positive sign for the country's economic outlook. It suggests that the measures taken by the government and the central bank to support the economy during the pandemic are starting to bear fruit, and that the recovery is gaining momentum. However, there are still risks and challenges that could impact the growth trajectory, such as geopolitical tensions and global economic uncertainty.

In conclusion, the AMRO's forecast of a 2.3% growth rate for the South Korean economy in 2024 is based on the expectation that the semiconductor sector will continue to drive export growth and lead the overall expansion of the economy. This prediction comes after a modest recovery from a contraction in 2022 and is a positive sign for the country's economic outlook, but there are still risks and challenges that need to be addressed.