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S. Korean economy to grow 2.3 pct this year: think tank

All News 11:00 September 29, 2016

SEOUL, Sept. 29 (Yonhap) -- South Korea's economy is projected to expand 2.3 percent this year, slowing from last year's 2.6 percent growth, largely due to an ongoing corporate revamp drive and tepid domestic demand, a private think tank said Thursday.

According to the Korea Economic Research Institute (KERI), Asia's fourth-largest economy will see its growth further decelerate to 2.2 percent next year.

"Amid a slowdown in the global economy, a recovery in domestic demand is weakening in the face of ongoing corporate restructuring," said the institute.

The South Korean economy is faced with post-Brexit uncertainties, imminent rate hikes in the U.S. and a slowdown in China, which will limit the implementation of monetary and fiscal policies here.

The KERI said consumer prices will rise 0.8 percent this year, and 1.1 percent next year, maintaining a trend of low prices. The country's current account surplus is expected to decline to US$98 billion next year from this year's estimated $102 billion.

S. Korean economy to grow 2.3 pct this year: think tank - 1


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