Gwangju's Economic Growth Rate Projected at 1.6?2.0% This Year

Gwangju Research Institute: "Recovery of Domestic Demand Is Key to Rebound"
Gradual Improvement in Construction and Facility Investment Conditions

The Gwangju Research Institute has projected that the economic growth rate in the Gwangju region will improve to around 1.6-2.0% this year, driven by the recovery of domestic demand and the easing of the construction industry downturn. This is similar to the 1.7-2.1% growth rate forecast for the Korean economy by major domestic and international institutions.

In its report, "Gwangju Policy Focus - 2026 Economic Outlook for Gwangju Metropolitan City," published on January 23, the Gwangju Research Institute stated that, although sluggish exports and reduced production in key industries are expected to persist to some extent, the region's overall manufacturing sector is likely to see a modest recovery due to increased private consumption and improved conditions for facility and construction investment.

The report analyzed that the improvement in economic conditions, centered on the recovery of domestic demand, is the key factor behind the rebound in the growth rate. It assessed that there is a high possibility of a moderate growth phase forming, similar to the overall trend of the Korean economy.

However, the research team emphasized that policy support is necessary to maintain a stable growth trajectory. The report identified the following major tasks: ▲ revitalizing domestic demand through continued support for local gift certificates ▲ implementing tailored employment policies to close employment rate gaps by age group ▲ restoring potential growth rates by discovering new growth engines based on the "Five Axes, Three Specializations" strategy ▲ establishing and expanding investment in regional manufacturing artificial intelligence (AI) funds linked to the National Growth Fund.

The Gwangju Research Institute stated, "To establish a foundation for sustainable mid- to long-term growth, rather than merely achieving a short-term economic recovery, it is essential to stimulate domestic demand, advance the industrial structure, and secure future growth engines in parallel."