SEOUL, September 30 (AJP) - South Korea’s economy is expected to grow 0.8 percent this year, the Asian Development Bank said Tuesday, leaving its July projection unchanged as government stimulus measures help counter sluggish exports and a cooling property market.
In its September Asian Development Outlook, the bank reiterated that fiscal and monetary easing should support a modest recovery in the second half of 2025. The bank had cut its April forecast of 1.5 percent growth for South Korea to 0.8 percent in July, citing weaker construction activity and falling overseas demand.
The ADP said South Korea's economic growth in 2026 is projected at 1.6 percent, with inflation holding steady at 1.9 percent this year and next.
Across the Asia-Pacific region, the bank nudged its 2025 forecast upward to 4.8 percent, 0.1 percentage point higher than in July, as stimulus policies are expected to blunt the impact of U.S. tariff increases and other trade frictions. Still, the ADB warned that exports would likely contract in 2026, trimming its regional growth projection to 4.5 percent.
The region’s inflation outlook softened for this year, to 1.7 percent from 2 percent, as oil and food prices decline. Consumer prices are expected to rise by 2.1 percent in 2026, the bank said, unchanged from its earlier forecast.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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