South Korea has room for active fiscal spending thanks to AI boom, Fitch says
By Jihoon Lee
Published on May 13, 2026.
Fitch's APAC sovereign ratings director, Sagarika Chandra, has stated that South Korea has room for active fiscal spending due to the country's strong economy and potential for increased tax revenue. She also suggested that the government debt would stabilise at around 50% of GDP in the medium term, slightly below the AA median. Additionally, she warned that there is potential for high inflation and a potentially increased risk to Fitch's forecasts for South Korea's economy.
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