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S. Korea cuts growth outlook for 2012, 2013

Published on Dec 27, 2012 12:43 PM

SEOUL (AFP) - The South Korean government on Thursday slashed the nation's growth outlook for this year and next year, citing the euro zone debt crisis and US fiscal woes that continue to dampen global demand.

In a biannual economic outlook, the finance ministry revised its earlier estimate of 4.0 per cent growth next year to 3.0 per cent, and this year's estimate from 3.3 per cent to 2.1 per cent.

"The economy continues to slow ... as global demand dragged down by prolonged euro zone debt crisis and lingering uncertainty dampen sentiment," the ministry said in a statement.

The growth of Asia's fourth-largest economy will continue to be limited in the first half of next year, but will "slightly improve" in the latter half when its major markets are expected to show signs of recovery, it added.

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