The Organization for Economic Cooperation and Development(OECD) said Tuesday that South Korea’s economy is expected to grow one percent this year before accelerating to two-point-one percent in 2026, supported by stronger consumer spending and steady exports.

In its latest economic outlook, the organization kept its one-percent projection for 2025 unchanged after lowering it from one-point-five percent in March, while trimming its 2026 forecast by zero-point-one percentage points to two-point-one percent.

The OECD said consumption will strengthen on the back of expansionary fiscal measures, such as consumer coupon programs, accommodative monetary policy and rising real wages while exports continue to underpin overall growth.

Inflation is expected to stay within the government’s target range, with consumer prices projected to rise two percent this year, one-point-eight percent next year, and two percent again in 2027.

The report warned, however, that export momentum could weaken over the medium term as tariff-negotiation uncertainty and shifts in global supply chains weigh on shipments and business investment.

The OECD forecasts the global economy will expand three-point-two percent this year and two-point-nine percent next year, noting that despite stronger-than-expected resilience, underlying vulnerabilities remain.