IMF Staff Country Reports

The 2024 Article IV Consultation analyzes that strong economic fundamentals and sound macroeconomic policies have helped the Korean economy navigate through multiple shocks in recent years. Economic growth has recovered from a sharp slowdown in 2023, inflation has reached the target, and financial stability risks have decreased. The authorities’ swift policy responses to contain inflation and financial stability risks, have contributed to stabilize the economy and reduce vulnerabilities. The Korean economy is expected to be in broad balance in 2025, with growth reaching potential and inflation near target. Real gross domestic product growth is estimated to have reached 2.2 percent in 2024, supported by strong exports despite relatively weak domestic demand. In the face of heightened uncertainty, rebuilding buffers while preserving macroeconomic stability remains immediate policy priorities. Medium-term policies should focus on boosting growth potential amidst rapid population aging, and adapting to shifting trade patterns, transformative technological change, and climate vulnerabilities.