SEOUL, December 10 (AJP) - The Asian Development Bank (ADB) raised its 2025 economic growth forecast for South Korea to 0.9 percent from 0.8 percent, citing the impact of government stimulus measures and stronger global demand for semiconductors.
In its latest regional outlook, the ADB also lifted its projection for 2026 growth to 1.7 percent from 1.6 percent.
The ADB’s 0.9 percent growth estimate aligns with forecasts from the International Monetary Fund (IMF) and the Korea Development Institute (KDI). By contrast, the Bank of Korea and the Organization for Economic Cooperation and Development (OECD) project slightly stronger growth of 1.0 percent.
The ADB said fiscal support and easing uncertainty following trade negotiations with the U.S. have helped stabilize the outlook, but warned that downside risks remain. A prolonged downturn in the domestic real estate market and escalating geopolitical tensions could weigh on growth.
Inflation is expected to average 2.1 percent this year, the ADB said, driven by higher food and oil prices. Additional price pressures could emerge from the planned reduction of fuel tax subsidies and a weaker won.
The ADB also left its 2025 growth forecasts for the United States and Japan unchanged at 1.7 percent and 1.1 percent, respectively, while projecting modest upticks next year.
China’s growth forecast was revised up to 4.8 percent from 4.7 percent, while India’s was raised to 7.2 percent from 6.5 percent, reflecting resilient domestic demand and strong export performance.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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