The Asian Development Bank forecast Tuesday that South Korea's economy will grow 3.5 percent this year, aided by falling commodity prices and a rebound in the U.S. economy.

The annual outlook by the ADB is slightly higher than the 3.4 percent forecast set by South Korea's central bank in January.

South Korea's economy, Asia's fourth-largest, expanded 3.3 percent last year.

In its Asian Development Outlook 2015, the ADB expected Asian economies will maintain their growth momentum, but China's economic growth will further slow to 7.2 percent this year.

"Developing Asia is making a strong contribution to global economic growth," Shang-Jin Wei, a chief economist at the ADB, said in a statement.

"Growth in the United States, where recovery seems to have turned a corner, is leading major industrial economies," it said.

Economic growth in East Asia will slow to 6.5 percent this year because of a slowdown in the Chinese economy, the ADB said.

However, growth will accelerate in Hong Kong and South Korea, "reflecting rising domestic demand and the improving global economy," it said.

China's "possible missteps" in transforming its investment-led economy into a more sustainable one, the Greek debt crisis and a possible rise in U.S. interest rates could pose risks to Asian economies this year, the ADB warned.

"The impending rise in U.S. interest rates may reverse capital flows to the region, requiring monetary responses to maintain stability," it said.

"The benefits flowing from the low price of oil could evaporate if geopolitical tensions push it sharply higher." (Yonhap)