ADB Raises South Korea’s Growth Forecast to 0.9% This Year... Next Year’s Outlook Also Up to 1.7%

The Asian Development Bank (ADB) has slightly raised its economic growth outlook for South Korea for both this year and next.
According to the Ministry of Economy and Finance on the 10th, the ADB, in its 'Supplement to the Asian Economic Outlook December 2025' released that day, projected South Korea’s economic growth rate for this year at 0.9%. This is a 0.1 percentage point increase from its September forecast. The outlook for next year was also raised by 0.1 percentage points to 1.7%.
The ADB cited several factors for the upward revision: a recovery in consumption driven by government stimulus measures, a rebound in global semiconductor demand, and reduced trade uncertainty due to progress in tariff negotiations. However, it noted that a sluggish real estate market, slowing global trade, and renewed geopolitical tensions remain downside risks for the South Korean economy.
The inflation rate in South Korea for both this year and next is projected at 2.1%, up 0.2 percentage points from the September forecast. The ADB explained that rising food and oil prices are expected to drive inflation this year, while reduced fuel tax subsidies and a weaker won could add inflationary pressure next year.
For the entire Asia-Pacific region, the ADB raised its economic growth forecast for this year to 5.1%, an increase of 0.3 percentage points from September. This reflects robust domestic demand in India and strong export performance among technology-driven economies in the region.
The economic growth forecast for next year was also revised upward by 0.1 percentage points to 4.6%. The ADB stated that the easing of trade uncertainty following the conclusion of various trade agreements was taken into account. However, it warned that high tariffs imposed by the United States and a slowdown in global economic activity could dampen growth.
This year’s inflation rate for the Asia-Pacific region was revised downward by 0.1 percentage points to 1.6%. The inflation outlook for next year remains unchanged at 2.1% compared to the September forecast.

hippo@fnnews.com Kim Chan-mi Reporter