The Asian Development Bank on April 28 in a report forecast Korea's economic growth this year at 3.5%, up two-tenths of a percentage point from its estimate made in December last year. Shown here are containers in November last year at the wharf Sinseondae at the Port of Busan. (Yonhap News)

By Oh Hyun Woo and Lee Jihae

The Asian Development Bank (ADB) has raised its economic growth forecast for Korea this year to 3.5%, up from its 3.3% estimate in December last year.

The projection was released on April 28 as part of the bank's Asian Development Outlook for 2021.

The ADB's forecast is lower than the 3.6% projection of the International Monetary Fund but higher than the 3.3% forecast of the Organisation for Economic Co-operation and Development.

The bank said the Korean economy next year will grow 3.1%.

The bank said the Korean government's expansionary fiscal and monetary policy, export growth led by higher demand for semiconductors and IT products, stimulation of consumption via lower car taxes and initiatives of the Korean New Deal were factors in the recovery of Korea's economic growth rate.

On Seoul's Green New Deal, the bank called it a government investment for sustainable economic recovery and a national development strategy that provides a blueprint for the Asian economy.

For its 46 regional member states excluding Japan, Australia and New Zealand, the ADB forecast average economic growth this year of 7.3%, up from its 6.8% forecast in December last year.

The bank releases an economic outlook for the region four times a year. The annual forecast comes out in April, a supplementary one from June to July, a revised outlook in September and another supplementary one in December.

hyunw54@korea.kr