Think tank pessimistic about growth

Korea’s economic growth is expected to slow to 3.5 percent in 2012 from a 3.6 percent expansion last year as global uncertainties hurt exports, a private think tank said yesterday.

In its growth outlook, Hyundai Research Institute said that first-half growth has been affected by protracted euro zone woes and sluggish economic conditions in the United States and China. It said such developments have hurt outbound shipments that play an important role in the country’s growth.

The HRI’s forecast for 2012 represents a 0.5 percentage point decrease from the 4.0 percent growth predicted earlier in the year. It is on par with estimates made by the Bank of Korea, but higher than the 3.25 percent growth forecast by the International Monetary Fund.

Official growth figures for the first half have not been released, but Asia’s fourth-largest economy gained 2.8 percent in the January-March period.

“Instead of the brisk pace of growth in the second half that could have pushed up overall annual growth numbers, gains from July onwards are expected to reach upper 3 percent levels,” the think tank said.

Yonhap