The Bank of Korea said on Friday it expects the domestic economy to grow just 2.8 percent this year, revising down its previous forecast of 3.2 percent. This is also lower than the government's projection of 3 percent.
The central bank's forecast reflects the slow recovery seen in the global economy, particularly in the eurozone. Uncertainty also remains in the United States over its borrowing capacity.
However, the central bank appears to be more optimistic about next year, when it forecasts the Korean economy will grow 3.8 percent.