(MENAFN) South Korea lowered its 2015 economic growth forecast to 3.1 percent, citing slumping exports and the negative impact of the MERS outbreak on the economy, Yonhap News reported.
The revised estimate represents a drop from the 3.8 percent gain predicted last year and is lower than the 3.3 percent growth reached in 2014. For 2016, the finance ministry predicted the economy to grow 3.5 percent.
The latest prediction is on par with a forecast made by the Bank of Korea in April and marginally higher than the 3 percent forecast made by the Paris-based Organization for Economic Cooperation and Development.
"There are factors that can push up growth, including low interest rates that can reduce the debt burden, but anticipated U.S. rate hikes and the MERS scare are adding to downside risks," the ministry said.
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