Barclays raises South Korea's 2026 GDP growth forecast to 2.1%

Gold Ten Data, November 7 — The recovery in the semiconductor industry has prompted Barclays to raise South Korea’s 2026 GDP growth forecast from 1.7% to 2.1%. Barclays also increased its 2026 current account surplus forecast from $8.4 billion to $11 billion. Economist Bum Ki Son wrote in the report, “We believe that with foreign portfolio inflows, South Korea’s balance of payments will experience its strongest performance in 15 years.” He expects the Bank of Korea to cut interest rates only once more, possibly in November, bringing the current easing cycle’s terminal rate down to 2.25%. Previously, he had forecast two more rate cuts—one in November and another in February 2026.