ADB raises S. Korea’s 2024 growth forecast to 2.5 pct

SEOUL: The Asian Development Bank (ADB) revised up its outlook for South Korea's economic growth this year to 2.5 percent given strong exports, Seoul's finance ministry said Wednesday. It marked a 0.3 percentage-point increase from its April forecast. The latest projection is on par with that made by the International Monetary Fund and the Bank of Korea. The South Korean government and the Organization for Economic Cooperation and Development presented a 2.6 percent expansion. The Manila-based bank maintained the growth outlook for 2025 at 2.3 percent and kept the forecast for inflation for this year unchanged at 2.5 percent and 2 percent for next year. The ADB said the rosier forecast came as exports remained strong on rising demand for semiconductors, among other items. Exports, a key growth engine, rose 5.1 percent on-year to US$57 billion in June, the ninth straight monthly gain, as chip exports surged 50.9 percent to reach an all-time monthly high, according to government data. For the broader Asia -Pacific region, the bank presented a 5 percent expansion projection this year by raising its earlier forecast by 0.1 percentage point, citing strong domestic demand and exports of electronics and other items. As major risk factors, the ADB pointed to political uncertainties in the United States and other major nations and deepening geopolitical tensions, as well as the continued slump in the Chinese real estate market. Source: Yonhap News Agency