The Asian Development Bank has revised up its outlook for South Korea's economy this year, citing growing chip exports and the government's fiscal support.
The bank forecasts South Korea's economy to grow three-and-a-half percent in 2021, up from its earlier prediction of 3.3 percent in December.
Such an outlook exceeds some other major predictions 3.2 percent growth by the Korean government and 3.3 from the OECD.
The revision comes a day after South Korea posted outstanding GDP growth of one.six percent for the first three months of the year recovering back to its pre-pandemic level.
The Korean government's efforts to stir up consumption such as giving tax reductions for automobile purchases and giving monetary support to the public contributed to the positive outlook.
The ADB's grouping of 45 Asia-Pacific countries, dubbed "Developing Asia", is expected to see a bumper growth of 7.3 percent in 2021, and up to 5.3 percent growth in 2022.
Of those, China was forecast to grow 8.1 and Vietnam is looking at 6.7 percent growth.
The bank gave an economic outlook of 11 percent growth for India, despite the country's recent struggle with the resurgence of the COVID-19 pandemic.
"India you know, it is the second largest economy in the region and therefore it does have important implications for the region as well, in particular for its neighbours in South Asiathe forecast is still achievable and realistic but we do flag the downside risks from the current severe outbreak."
Another strong boost comes from the U.S., as many Asian economies heavily depend on its economy.
"Rapid economic recovery in the U.S. means a stronger import demand. The U.S. is for many Asian economies is one of the top two, top three trading partners and therefore that will likely provide a boost to growth."
Given that ADB's forecast assumes that vaccine drives will go as planned, slow progress in vaccination and shortages in supply could undermine growth.
Increasing geopolitical tensions, production bottlenecks and tough financial conditions could become other risks which could also pull back the growth of the global economy this year.
Kim Sung-min, Arirang News.