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Nomura: South Korea’s policy efforts to counter oil price shocks may lead to higher-than-expected economic growth in 2026

Nomura: South Korea’s policy efforts to counter oil price shocks may lead to higher-than-expected economic growth in 2026

金十金十2026/03/11 03:44
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Golden Ten Data reported on March 11 that Nomura Securities analysts stated that as South Korea takes measures to address the impact of oil prices, the country's GDP growth rate may reach 2.3% in 2026, surpassing market expectations. They wrote in the report: "Overall, although rising oil prices may have an adverse effect on economic growth in the short term, we believe the government has sufficient policy options to mitigate the downside risks facing growth prospects." They indicated that setting price caps on petroleum products and further reducing fuel taxes could be key tools to buffer high retail prices in the short term. They added that the government could formulate a supplementary budget of 10 trillion to 20 trillion won to support vulnerable households and sectors, and release strategic oil reserves to stabilize supply.
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