ADB revises up growth outlook for S. Korea

SEOUL, Sept. 22 (Yonhap) -- South Korea's economy is expected to shrink 2 percent
this year, the Asian Development Bank said Tuesday, revising upward its earlier
growth projection amid signs of a faster-than-expected recovery.
ADB's latest prediction for Asia's fourth-largest economy is higher than its
earlier outlook of negative 3 percent but it is still lower than Seoul's target
of a 1.5 percent contraction.
South Korea's economy, however, will rebound 4 percent next year, marking a sharp
turnaround from this year's sluggish growth performance, according to the bank in
a report posted on its official Web site.
ADB predicted South Korea's consumer prices will grow 2.5 percent this year,
while its current account surplus will amount to 5 percent of the nation's gross
domestic product.
The revision comes amid growing signs South Korea's economy is making a comeback
from the worst downturn in recent years. Many think tanks and foreign investment
banks are painting rosier outlooks for Korea than they did months ago.
The bank also revised upward its growth projection for the whole Asian region
this year to 3.9 percent from a 3.4 percent advance predicted in March. Its 2010
growth outlook was also raised from 6 percent to 6.4 percent, according to the
report.
China's economy, South Korea's main export market, will expand 8.2 percent this
year before growing 8.9 percent in 2010, the report said. ADB's earlier
prediction for the world's most populous country was 7 percent and 8 percent in
2009 and 2010, respectively.
kokobj@yna.co.kr
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