South Korea to Cut 2012 Growth Forecast
06/17/2012| 06:36pm US/Eastern
The South Korean government will cut its economic growth forecast for this year to 3.4% from its earlier projection of 3.7% due to a further weakening in the global economy, the Korea Economic Daily reported in its Monday edition, citing an unidentified government official.
On its website, the newspaper said the Ministry of Strategy and Finance will revise its growth forecast downward to reflect recent developments in the euro zone when the ministry unveils a new economic outlook later this month.
In a statement in response to the report, the ministry said: "Nothing has been decided yet. Any decision, if made, will be released later this month."
The government has been widely expected to lower its growth projection following similar moves by the central bank and international organizations such as the International Monetary Fund.
The IMF said last week it now expects South Korea's gross domestic product to grow 3.25% this year, slower than its earlier projection of 3.5%, because of the worsening situation in the euro zone's sovereign debt crisis.
The Bank of Korea lowered its own forecast to 3.5% from 3.7%.
Write to firstname.lastname@example.org