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South Korea's economy is expected to grow 3.1 percent next year, a private think
tank said Sunday, revising down its earlier growth forecast on weakened domestic
demand and exports.
The latest forecast by the Hyundai Research
Institute (HRI) is lower than a 3.5 percent growth predicted in October. The
think tank also cut its growth estimate for this year from 2.5 percent to 2.2
percent.
"The private sector consumption growth remained in the
1-percent range this year and investment in construction and facility also
posted a minus growth for two consecutive quarters," the think tank
said.
"Domestic demand has weakened and a recovery in exports is not
sufficient so we lowered our growth estimates," it added.
Its growth
forecast for next year is in line with other research institutes. It is still
much higher than the government's growth outlook of 4 percent.
The HRI
expected that private-sector consumption will grow 2.5 percent next year.
Construction and facility investment will expand 2.2 percent and 4.8 percent,
respectively.
The think tank also forecast that the country will
register a current account surplus of US$28.5 billion next year, down from this
year's estimated surplus of $39 billion.
Consumer prices are projected
to grow 2.5 percent in 2013, which is slightly higher than a 2.2 percent gain
estimated for this year. The think tank added that the won-dollar exchange rates
will stay at around 1,060 won next year.