Central Bank cuts South Korea's growth forecast

on 11/01/2013 09:16:28

South Korea's central bank cut its forecast for the country's economic growth this year due to slower corporate investment.

The Bank of Korea on Friday lowered its 2013 forecast for Asia's fourth-largest economy to 2.8% from 3.2% forecast in October.

The bank said investment by companies would grow more slowly than expected because of uncertainties about the global economic outlook.

Governor Kim Choong-soo said the bank left its key interest rate unchanged at 2.75%.

Mr Kim said growth is dependent on corporate investment as there is not much room for consumers to increase spending.