(MENAFN) The South Korean economy will probably grow at a slower pace than previously predicted this year as slumping exports sap its overall recovery, Yonhap News reported.
The Korea Development Institute (KDI) downgraded its growth forecast for Asia's fourth-largest economy to 3 percent this year from an earlier expectation of 3.5 percent.
The latest prediction is lower than the 3.1 percent growth estimated by the Bank of Korea in early April and much lower than the mid-3 percent range being targeted by government.
"There are positive signs in regards to consumer spending and investments, but there are considerable downside risks pulling down the economy," head of KDI's economic outlook team said.
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