ADB cuts Korea’s 2025 growth forecast to 2%

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ADB cuts Korea’s 2025 growth forecast to 2%

Published: 11 Dec. 2024, 10:00

Finance Minister Choi Sang-mok [NEWS1]

The Asian Development Bank (ADB) has lowered its 2025 growth outlook for the Korean economy to 2 percent, the Ministry of Economy and Finance said Wednesday.

The latest figure marks a 0.3 percentage-point fall from its earlier projection presented in September, the ministry said, citing the latest report by the Manila-based bank.

The projection is on par with the forecasts by the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD), both of which have projected 2 percent growth for Asia's fourth-largest economy.

The ADB said the country's export momentum is likely to slow due to the downturn in the semiconductor sector despite interest rate cuts and improved government policies.

For the broader Asia-Pacific region, the ADB forecasts a 4.8 percent expansion in 2025, down 0.1 percentage point from earlier, due to sluggish domestic demand in South Asian countries.

Yonhap