(MENAFN - Qatar News Agency) South Korea's economy is expected to grow 3.1% 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% growth predicted in October.
The think tank also cut its growth estimate for this year from 2.5% to 2.2%, according to South Korea's (Yonhap) News Agency.
"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%.
The HRI expected that private-sector consumption will grow 2.5% next year.
Construction and facility investment will expand 2.2% and 4.8%, respectively.
The think tank also forecast that the country will register a current account surplus of US28.5 billion next year, down from this year's estimated surplus of 39 billion.
Consumer prices are projected to grow 2.5% in 2013, which is slightly higher than a 2.2% gain estimated for this year.
The think tank added that the won-dollar exchange rates will stay at around 1,060 won next year.