An economic surveillance organization in Asia expected the South Korean economy to expand 2.3 percent in 2024, with inflation expected to further lose steam in the year as well.

The ASEAN+3 Macroeconomic Research Office (AMRO) made the assessment in its regional report after predicting Asia's No. 4 economy would expand 1.7 percent this year earlier this week amid slowing exports.

South Korea's inflation is expected to reach 2.2 percent in 2024, compared with 3.3 percent projected for this year, it added.

Consumer prices, a key gauge of inflation, rose 4.2 percent in March, slowing from a rise of 4.8 percent in February, a report from Statistics Korea showed earlier this week. It marked the lowest level since the 4.1 percent growth tallied in March 2022.

South Korea's exports fell for the sixth consecutive month in March due mainly to weak global demand for semiconductors amid an economic slowdown, with the country suffering a trade deficit for 13 months in a row.

The organization, meanwhile, added the regional economy is facing various challenges, including soaring energy prices and the slowing U.S. economy, along with the slower-than-expected recovery of China.

Looking ahead in the longer term, AMRO said the fragmentation of the global economy amid the U.S.-China dispute, along with climate change, will have an adverse impact on the region.

AMRO added the bloc's economy, including South Korea, Japan and China, will expand 4.6 percent this year on the back of the recovery of the tourism sector, with inflation reaching 4.7 percent.

Source: Yonhap News Agency