Citigroup: South Korea will welcome the "blonde girl" economy in 2026.

Citigroup Investment Research economist Jin-Wook Kim wrote in a report that South Korea is moving towards a "Goldilocks" economy next year - not too hot, not too cold. Kim pointed out that driven by strong semiconductor exports and soft energy prices, the country's Gross Domestic Product (GDP) may grow by 2.2% in 2026, slightly higher than the estimated potential growth rate of 1.8%. Kim believes that the inflation rate in 2026 is likely to stabilize at an average of 1.8%, below the central bank's target of 2%. He added, "The 'Goldilocks' condition should provide the government with room to implement market-friendly financial and industrial policies." Citigroup has raised its target for the country's benchmark Korea Composite Stock Price Index from 3,700 points to 5,500 points.