A report showed that South Korea’s economy may have hit its lowest point this year, but its growth is expected to revive to around 2% next year.

The report, according to South Korea’s Yonhap agency, indicated that the average forecast of 41 local and international organizations for South Korea’s economic growth in 2026 reached 1.8%, which, if realized, would represent a significant recovery compared to the 0.9% growth expected this year by the Bank of Korea.

The Bank of Korea previously forecasted that the local economy would grow by 1.1% on a quarterly basis from last July to the upcoming September, potentially ranking it among the top 5 growth rates out of 37 major economies.

This positive outlook is partly attributed to strong exports driven by increased demand for semiconductors and a revival in domestic consumption.

South Korea has a market economy ranked fifteenth globally by GDP and twelfth by purchasing power parity, placing it among the G20 largest economies in the world.

South Korea is classified as an advanced country with a high-income advanced market and is a member of the Organisation for Economic Co-operation and Development (OECD), being the only one among the Asian Tigers.

South Korea’s economy was among the fastest growing between the 1960s and 1990s and also among the fastest in the first decade of the 21st century, alongside the economies of Hong Kong, Singapore, and Taiwan.