November 07, 2018 09:32
The Korea Development Institute in a report Tuesday slashed its forecast for the Korean economy this year by 0.2 percentage points to 2.7 percent, the lowest since 2012.
The state-run think tank also cut its forecast for next year to just 2.6 percent, 0.1 percentage points lower than its estimate in the first half of this year.
The report cited growing economic uncertainties like a slowdown in private investment, sluggish employment and growing household debt, currently estimated at around US$1.3 trillion. It said the government's expansionary fiscal measures, though needed, have had a limited effect in strengthening the competitiveness of local businesses.
Although exports are expected to be robust through next year, risks are growing from an intensifying trade war between China and the U.S. as well as the long-term effects of trade protectionism.
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