(MENAFN) According to South Korea's central bank, the country's growth forecasts were lowered to 3.5 percent for 2014 from 3.8 percent forecasted three months earlier, Xinhua reported.
The 2015 growth outlook was also lowered from 4.0 percent to 3. 9 percent, the Bank of Korea (BOK) said, after deciding to cut interest rates by a quarter percent to a record-low of 2 percent.
The negative output gap means actual GDP growth is below the one for potential growth. The closing of the gap indicates the actual GDP growth equals to potential growth.
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