SEJONG, April 11 (Korea Bizwire) — South Korea’s economy is forecast to expand 3 percent this year, following last year’s 3.1 percent growth, the Asian Development Bank (ADB) said Wednesday.
Asia’s fourth-largest economy is likely to benefit from a recovery in major economies and private spending, the regional bank said.
In December of last year, the ADB forecast the 3 percent gain for the South Korean economy. The institute said next year’s growth estimate for South Korea is set at 2.9 percent.
The ADB said growth picked up across most of the economies in developing Asia and supported by continued high demand for exports and rapidly expanding domestic demand.
The ADB forecasts gross domestic product (GDP) growth in Asia and the Pacific to reach 6 percent in 2018 and 5.9 percent in 2019, a slight deceleration from the 6.1 percent registered in 2017.
But risks to the outlook are tilted to the downside, driven primarily by fears of escalating trade tensions, the ADB said, adding that rising private debt remains a concern in some Asian economies.