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ADB cuts 2023 growth outlook for S. Korea to 1.5 pct

All News 09:00 December 14, 2022

By Kang Yoon-seung

SEOUL, Dec. 14 (Yonhap) -- The Asian Development Bank (ADB) on Wednesday lowered its outlook for South Korea's growth for next year, citing the slowing global economy and soaring energy prices.

In its report on next year's world economy, the Manila-based bank said South Korea's gross domestic product is expected to grow 1.5 percent in 2023, lower than its September forecast of a 2.3 percent rise.

The latest outlook is below a 1.8 percent gain estimated by the Organization for Economic Cooperation and Development and 1.7 percent expansion by the central Bank of Korea.

The ADB cited growing external uncertainties, including the slowing global economy and rising energy costs. South Korea depends heavily on imports for its energy needs.

This year's growth outlook came to 2.6 percent, unchanged from the previous estimate released in September.

As for inflation, the ADB expected prices in South Korea to rise 3.2 percent on-year in 2023, up 0.2 percentage point from the previous outlook.

For this year, inflation in South Korea is expected to rise 5.1 percent, up 0.6 percentage point from the September forecast.

The Asian economy, meanwhile, is expected to grow 4.6 percent in 2023, down 0.3 percentage point from the previous estimate. The regional economy is expected to grow 4.2 percent this year.

The ADB added that the slowing Chinese economy, the Russian-Ukraine war and the global economic slowdown are three "main headwinds" confronting the regional economy.

ADB cuts 2023 growth outlook for S. Korea to 1.5 pct - 1


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