ADB trims S. Korea's growth outlook for 2020 amid virus pandemic

SEOUL, April 3 (Yonhap) -- The Asian Development Bank (ADB) on Friday slashed its outlook for South Korea's economic growth for 2020 by 1 percentage point to 1.3 percent amid the new coronavirus pandemic.

The ADB's latest downward revision hovers far below the 2020 growth outlook suggested by the Bank of Korea, which expects Asia's No. 4 economy to expand 2.1 percent this year, with a possibility of a further cut.

The Manila-based lender had slashed South Korea's growth outlook by 0.1 percentage point in December. The ADB expects the country's economy to expand at a wider pace of 2.3 percent in 2021.

The South Korean economy grew 2 percent last year, the lowest in a decade.

Meanwhile, the ADB said it expects the Chinese economy to expand 2.3 percent this year, down from the previous projection of 5.8 percent.

The COVID-19 pandemic has strained Asia's fourth-largest economy, as global trade and supply chains have been disrupted.

In March, South Korea's exports fell 0.2 percent from a year earlier in the face of the growing economic fallout from the pandemic, missing a market consensus of 1.2 percent gain.

The finance ministry said earlier the economy might contract in the first quarter of the year on weaker exports and private spending.

colin@yna.co.kr
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