ADB Cuts Korea's Growth Forecast to 1.3% on Slowing Exports

The Asian Development Bank on Wednesday slashed its outlook for Korea's economic growth this year to 1.3 percent.

The bank revised down its projection from its April forecast of 1.5 percent. It is lower than the Bank of Korea's outlook (1.4 percent) as well as those of the OECD and the International Monetary Fund (1.5 percent).

One of the main reasons is a slump in the country's outbound shipments, which have seen on-year declines for nine months in a row.

The bank also raised Korea's inflation outlook for this year from 3.2 percent to 3.5 percent but noted that if it cools down sooner than expected, it will boost economic growth.

The bank maintained its average growth outlook for 46 developing Asian countries at 4.8 percent.