ADB slashes S. Korea's 2025 growth forecast to 1.5 pct

SEOUL, April 9 (Yonhap) -- The Asian Development Bank (ADB) has sharply lowered its 2025 growth outlook for the South Korean economy to 1.5 percent, Seoul's finance ministry said Wednesday.

The latest figure marks a 0.5 percentage-point decline from its earlier projection presented in December, the ministry said, citing the latest report by the Manila-based bank.

The projection is on par with the forecasts by the Organization for Economic Cooperation and Development (OECD) and the Bank of Korea (BOK).

The International Monetary Fund (IMF) has presented a 2 percent expansion for Asia's fourth-largest economy this year, and the South Korean government expected 1.8 percent growth.

The adjustment was due mainly to such domestic factors as weak private consumption caused by high interest rates, household debts and political uncertainty, as well as the sluggish construction sector.

The bank also pointed to intensified export competition with the United States and China and to uncertainties in the global economy as major challenges, the ministry said.

The latest projection does not factor in the potential impact of the Donald Trump administration's sweeping tariff scheme, leaving open the possibility that the bank may further slash the outlook in the future.

graceoh@yna.co.kr
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