ADB maintains its 2021 growth outlook for S. Korean economy at 4 pct

SEOUL, Dec. 14 (Yonhap) -- The Asian Development Bank (ADB) on Tuesday kept its 2021 growth outlook for the South Korean economy at 4 percent, as economic recovery momentum has extended amid robust exports. The estimate by the Manila-based bank -- unchanged from its previous forecast in September -- is on par with the growth forecasts by the Bank of Korea and the Organization for Economic Cooperation and Development. The International Monetary Fund forecast 4.3 percent for South Korea this year. The ADB kept its 2022 growth outlook for South Korea at 3.1 percent. The South Korean economy is on a recovery track on the back of solid exports. Exports, which account for half of the country's economy, grew 32 percent on-year to a record high of US$60.44 billion in November, extending their gains to the 13th straight month. But it also faces growing downside risks from the latest upsurge in COVID-19 cases and the spread of the omicron variant. The South Korean economy grew 0.3 percent in the third quarter from three months earlier, from a 0.8 percent on-quarter gain in the second quarter, according to central bank data. The ADB, meanwhile, raised its 2021 outlook for South Korea's consumer prices to 2.3 percent from its September estimate of 2 percent, citing improving consumer spending and surging energy costs. The bank's 2022 inflation forecast was raised to 1.9 percent from 1.6 percent. The ADB lowered its 2021 growth outlook for 46 developing Asian countries to 7 percent from its September estimate of 7.1 percent, citing the global flare-up in COVID-19 cases. It also cut its 2022 growth forecast for the region to 5.3 percent from 5.4 percent. The bank said the spread of the omicron variant and the slow progress in vaccinations in some countries will serve as major downside risks for the economic growth in the region. sooyeon@yna.co.kr (END)