ADB maintains 1.5 percent growth outlook on Korea for 2023

The Asian Development Bank (ADB) on Tuesday maintained its 1.5 percent growth outlook for Korea in 2023, citing continued uncertainties in the global economy.

The latest estimate by the Manila-based bank remains unchanged from the previous outlook released in December when it slashed the forecast on the growth of Asia's No. 4 economy for this year by 0.8 percentage points.

The figure is just below the 1.6 percent growth projected by the Bank of Korea and the Organization for Economic Cooperation and Development.

As for inflation, the ADB expected prices in Korea to rise 3.2 percent on-year in 2023, maintaining its previous estimate, citing its continued monetary tightening moves.

In February, the Bank of Korea kept the benchmark interest rate unchanged at 3.5 percent for the first time in 10 months as worries are growing that aggressive monetary tightening could hurt economic growth.

Inflation is expected to gradually lose steam to reach 2 percent in the following year, it added.

The ADB added the reopening of the Chinese economy will give upward momentum for the entire Asian economy down the road, although the global inflation and monetary tightening moves remain challenges.

Yonhap