(MENAFN - Qatar News Agency) The Korea Development Institute (KDI) lowered its forecast of South Korea's economic growth for this year to 3.6% on Sunday, citing global economic uncertainties.
The latest projection is down from the 3.8% made by the KDI in November and lower than the government's estimate of 3.7%. The think tank also predicted the country's economic growth to rise to 4.1% next year, according to (Yonhap) news agency.
"The South Korean economy has been stuck in a slowdown since the second half of last year due to weakened domestic and overseas demand stemming from global economic uncertainties," the KDI said.
However, Asia's fourth-largest economy is expected to post solid recovery from the latter half of this year, with the growth rate rising to the 4% range next year thanks to a gradual global economic recovery, it said.
According to the KDI, South Korea's exports are predicted to expand 3.6% on-year in 2012, a pace similar to that of last year.
Private consumption will likely to increase 2.7% this year from a year earlier, backed by greater corporate employment and a slowdown in the rise of crude prices.
Corporate capital spending is expected to increase 8.1% in 2012 on reduced economic uncertainties at home and abroad, and a low base of comparison last year.
South Korea's trade surplus will likely reach US18.3 billion this year, with consumer prices forecast to rise 2.5% on-year.
The country's jobless rate is predicted to stand at 3.4% this year, with the figure likely to fall to 3.3% next year, according to the think tank.