South Korea's economy is expected to expand at a slower than targeted pace this year mainly due to a slowdown in exports and weak recovery in private spending, a parliamentary body said Monday.
Asia's fourth-largest economy will grow 4.8 percent this year, lower than the government's growth target of 5 percent, according to the National Assembly Budget Office.
The growth estimate compares with a 5-percent gain projected by the Bank of Korea.
"After peaking in the first half, the economy is estimated to have entered a contraction phase of the business cycle," it said.
The office said exports will increase 10.1 percent in the second half, slowing from a 13.9 percent rise in the first half, mainly due to a slowing global economy and high oil prices.
Private spending, one of the economy's growth engines, will slow to 4.1 percent in the second half from a 4.6-percent gain in the first six months of the year, it said.
Corporate spending is expected to increase 4.9 percent in the second half, also slowing from a 6.8-percent increase in the first half, it said.
The nation's current account surplus will reach US$2.21 billion, nearly half the government's estimate of $4 billion, while inflation rate will be around 2.9 percent in the second half, accelerating from the first half's 2.4 percent, the office said.
Seoul, July 10 (Yonhap News)
S. Korean economy to grow 4.8 pct this year; parliamentary body |
