The Korea Times
The Asian Development Bank (ADB) has raised its growth outlook for Korea this year to 1.9 percent on the back of rising exports and improved private consumption, Seoul's finance ministry said Friday. The figure marks a 0.2 percentage-point increase from the Manila-based bank's previous forecast made in December. The ADB's latest forecast is in line with those of the International Monetary Fund and the Korea Development Institute, both of which also project 1.9 percent growth this year. The Bank of Korea has projected the economy to expand by 2 percent. The ADB attributed the upgrade to strong semiconductor exports amid a global industry upcycle, alongside expectations that expansionary fiscal policy and a cut of the key interest rate could support a recovery in domestic demand this year. The organization also cited the expected effects of increased government spending in strategic sectors, such as semiconductors, defense and biotechnology. However, the bank pointed to several downside risks, including the possibility of additional tariff measures by the United States, sluggish constructio
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