ADB Raises South Korea's Growth Forecast to 2.6%, Up 0.7 Percentage Points

[Economy 365]

The Asian Development Bank (ADB) has raised its economic growth forecast for South Korea this year to 2.6%, an increase of 0.7 percentage points from its previous projection of 1.9%.

This adjustment reflects stronger-than-expected growth in the first quarter and the impact of government measures, such as the oil price ceiling and fuel tax cuts.

The ADB projected that increased semiconductor exports, driven by the expansion of AI demand, will lead South Korea's economic growth this year and next.

However, it identified potential long-term energy supply disruptions, the re-imposition of tariffs by the United States, and the possibility of stock market corrections as downside risk factors.

The inflation forecast for this year has also been adjusted upward from 2.3% to 2.7%, reflecting the rise in international energy prices.

The International Monetary Fund (IMF) has also raised its growth forecast for South Korea this year to 2.6%, and the government is expected to revise its own growth outlook in the second-half economic policy direction to be announced next week.

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