South Korea cuts 2016 growth forecast to 3.3%: WSJ

South Korea's government has cut next year's economic growth forecast from 3.5 per cent to 3.3 per cent.
South Korea's government has cut next year's economic growth forecast from 3.5 per cent to 3.3 per cent.PHOTO: BLOOMBERG

SEOUL (REUTERS) - South Korea's government has cut next year's economic growth forecast to 3.3 per cent from 3.5 per cent due to China's slowing economy but still believes it can meet this year's target, the finance minister told the Wall Street Journal.

The government had set a 2015 growth target of 3.1 per cent and a 2016 goal of 3.5 per cent when it released a revised economic policy statement in late June.

This year's target had been lowered from 3.8 per cent.

Finance Minister Choi Kyung-hwan said the government made the change while drawing up next year's government budget. He made the remarks on the sidelines of a conference for finance chiefs from the Group of 20 major economies in Ankara.

The government is expected to submit its 2016 budget bill to parliament this month.

South Korea's economy recorded its weakest expansion in six years in the second quarter, battered by a deadly virus outbreak, dry weather and poor exports.