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InstaForex - Official partner of Dragon Racing

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InstaForex - Official partner of Dragon Racing

2014.12.2122:22:00UTC+00South Korea Cuts GDP Forecast For 2015

South Korea cut its growth forecast on Monday as consumer and investment sentiment in the private sector weakened.

The forecast for economic growth in 2015 was downgraded to 3.8 percent from the 4 percent growth projected in July, the Ministry of Strategy and Finance said in its biannual economic outlook.

The GDP projection for the current year was also revised to 3.4 percent from 3.7 percent.

In 2013, the economy had grown 3 percent.

The government will introduce measures next year to boost wages and to push businesses to use their cash reserves to create jobs and increase investment, Director-General Lee Chanwoo said.

These measures will boost domestic demand and also reduce the economy's reliance on exports. The contribution of domestic demand to growth will outpace that of exports by next year, he added.

Improvements in the U.S. economy are expected to boost exports in South Korea and the drop in oil prices is expected to boost consumption.

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