Seoul: The Asian Development Bank (ADB) has sharply revised down its economic growth forecast for South Korea this year to 0.8 percent. The South Korean finance ministry said Wednesday that the latest projection marks a 0.7 percentage-point drop from the ADB's previous forecast released in April, according to the ministry, citing the latest report by the Manila-based bank.

According to Qatar News Agency, the revised outlook is more pessimistic than those of other major institutions. The Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) have forecast 1 percent growth, while the Bank of Korea projected 0.8 percent.

The ADB attributed the downgrade to several factors, including a decline in construction investment, slowing exports, and continued weakness in the local real estate market. Additionally, the ADB warned that further export contraction could occur due to rising US tariff measures and growing trade uncertainties.

However, the bank indicated that domestic demand is expected to rebound in the second half of the year, supported by expansionary fiscal policy and the resolution of political uncertainty following the June presidential election.