The Asian Development Bank(ADB) has projected the South Korean economy will grow two-and-a-half percent this year.

The bank had already downgraded Korea's growth outlook once in December from two-point-eight to two-point-seven percent, citing political uncertainty. 

In a new report Thursday, ADB forecast Korea's growth will be weakened by a smaller current account surplus and a dent in private sector spending due to a number of factors including soaring household debt.

However, the report projected Korea's growth to rise to two-point-seven percent next year as political uncertainties alleviate and household and corporate sentiments improve.