0.8% 0.8% again 0.8%... Following the Bank of Korea and KDI, ADB also

[Financial News] The Asian Development Bank (ADB) has significantly lowered its forecast for South Korea's economic growth rate this year to 0.8%. This is a decrease of 0.7%p from the forecast (1.5%) presented in April, marking the largest drop among major Asia-Pacific countries. ADB cited the decline in construction investment and the slowdown in exports due to the imposition of tariffs by the United States as major reasons.
 In its 'July 2025 Asian Economic Outlook' report released on the 23rd, ADB presented South Korea's economic growth rate forecast at 0.8%.
 This is at the same level as the recent forecasts of the Bank of Korea (0.8%) and the Korea Development Institute (KDI·0.8%), but lower than the International Monetary Fund (IMF·1%) and the Organization for Economic Cooperation and Development (OECD·1%).
 ADB cited export contraction, sluggish construction investment, and weakness in the real estate market as factors for the slowdown in growth.
 ADB stated, "With the increase in global trade uncertainty and the rise in tariffs by the United States, exports are expected to shrink further in the future." However, it added that political uncertainty has been resolved after the June presidential election, and domestic demand is expected to recover in the second half of the year, supported by expansionary fiscal policy.
 ADB also lowered South Korea's 2026 economic growth rate to 1.6%, down 0.3%p from 1.9% in April. ADB's analysis is that trade uncertainty and the impact of tariff increases will continue to be a burden.
 In this forecast, the overall growth rate forecast for the Asia-Pacific region was lowered from 4.9% to 4.7%. In December last year, it was forecast at 4.8%, then adjusted up by 0.1%p in April, but lowered again by 0.2%p this time.
 ADB explained, "The export contraction due to the tariff war originating from the United States acts as a risk factor for the Asia-Pacific region as a whole," and "Geopolitical conflicts in the Middle East and the long-term stagnation of the Chinese real estate market are also factors for growth slowdown."
 By major country, China's growth rate forecast for this year was maintained at 4.7%. Taiwan's forecast was adjusted upward from 3.3% to 3.5%. The Southeast Asian region was significantly lowered from 4.7% to 4.2% due to the impact of export hits from the tariff war.


spring@fnnews.com Lee Bomi Reporter