March 08, 2019 08:36
The OECD on Wednesday cut its growth outlook for Korea's economy this year to 2.6 percent, down 0.2 percentage points from its previous estimate in November. It also lowered its forecast for 2020 by 0.3 percentage points to 2.6 percent.
It said the Korean government's expansionary fiscal policy and low inflation will support domestic demand, but a slowdown in global trade will hurt exports, which account for nearly half of the country's GDP. Korea's exports plunged by more than 11 percent on-year in February, the third straight month of decline
The downward revision came days after rating agency Moody's slashed its growth projection for Korea to 2.1 percent.
The organization also revised its global growth forecast for this year from 3.5 percent to 3.3 percent.
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