South Korea’s economic growth is expected to slow to 3.4 percent in 2012 due to a sluggish global economy that may hurt investment and domestic demand, the Asian Development Bank said Friday.
The growth forecast for Asia’s fourth-largest economy is lower than Seoul’s official growth projection of 3.7 percent expansion for this year and last year’s 3.6 percent expansion, according to an ADB report.
The report analyzed economic conditions of 45 Asian countries.
The summary of the report was distributed here by the Ministry of Strategy and Finance.
“The ADB forecast and assessment is broadly in line with other international institutions,” a finance ministry official said.
“While the uncertainties may adversely affect trade, the regional development bank expected South Korea’s outbound shipments to grow.”
For 2013, the ADB said South Korea’s economic growth may rise to 4 percent.
The ADB, meanwhile, predicted that the average growth rate for Asian countries is expected to reach 6.9 percent this year before inching up to 7.3 percent next year.
China will likely continue to lead Asia’s growth by expanding 8.5 percent this year and 8.7 percent in 2013, the report showed. India’s economy is expected to expand 7.0 percent and 7.5 percent during the same cited years.
The report, however, expressed concerns over persistent uncertainties in eurozone countries and slow growth in the United States and Japan.
It said for Asia’s developing economies to grow, more must be done to fuel domestic demand.
The report added that inflationary pressure will recede this year, and advised governments to do more to diversify trade and ensure a healthy fiscal balance.
The ADB forecast that inflation in the Asian region will gain 4.6 percent this year after growing 5.9 percent in 2011. For 2013, prices are expected to rise 4.4 percent.
(Yonhap News)
