South Korea's economy is expected to rebound in 2026, driven by easing uncertainties and accommodative policies, an official from the International Monetary Fund said Wednesday, calling on the country to put in efforts to revitalize domestic consumption and accelerate structural reforms to further boost growth. "Growth is expected to reach 0.9 percent in 2025, as domestic demand gradually recovers, supported by more accommodative fiscal and monetary policies, and strong semiconductor external demand offsets declines in other exports." "Long-term fiscal reforms are needed to accommodate future age-related spending pressures while ensuring fiscal sustainability," he said. The IMF official stressed the accommodative monetary and fiscal policies of President Lee Jae Myung's administration are appropriate considering moderate inflation and a negative output gap but called on the authorities to remain agile as external uncertainties are persisting. Anand also welcomed Seoul's economic growth strategy centered on supporting the development of service exports and artificial intelligence transformation, saying it would help Korea enhance its resilience to external risks.