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Asian Development Bank raises Korea's 2026 growth outlook to 1.9%

Published: 10 Apr. 2026, 11:25

This file photo shows the logo of the Asian Development Bank. [YONHAP]

The Asian Development Bank (ADB) has raised its growth outlook for Korea this year to 1.9 percent on the back of rising exports and improved private consumption, the Ministry of Finance and Economy said on Friday.

The figure marks a 0.2 percentage point increase from the Manila-based bank's previous forecast made in December 2025.

The ADB's latest forecast aligns with those of the International Monetary Fund and the Korea Development Institute, both of which also project a 1.9 percent growth this year. The Bank of Korea has projected the economy to expand by 2 percent.

The ADB attributed the upgrade to strong semiconductor exports amid a global industry upcycle, alongside expectations that expansionary fiscal policy and a cut of the key interest rate could support a recovery in domestic demand this year.

The organization also cited the expected effects of increased government spending in strategic sectors, such as semiconductors, defense and biotechnology.

However, the bank pointed to several downside risks, including the possibility of additional tariff measures by the United States, sluggish construction sector activity and uncertainty in chip demand related to AI.

The ministry explained that the ADB outlook reflects a scenario in which Middle East tensions stabilize within one month. Economic uncertainty has widened since U.S.-Israeli strikes on Iran in late February.

It also noted that the potential economic effects of the country's supplementary budget have not been factored in, meaning actual growth could differ from the forecast.

For 2027, the ADB expects the Korean economy to grow 1.9 percent, according to the ministry.

Yonhap