Bank of Korea cuts South Korea's growth outlook

Bank of Korea cuts South Korea's 2012 growth outlook to the lowest in 3 years

Associated Press

SEOUL, South Korea (AP) -- South Korea's central bank says it has lowered South Korea's 2012 growth outlook to the lowest level in three years.

The Bank of Korea said Friday the South Korean economy is forecast to expand 3 percent this year, compared with its April forecast of 3.5 percent.

The revised outlook will mark the slowest annual growth since South Korean's economy grew 0.3 percent in 2009 in the wake of the U.S.-sparked global financial turmoil.

The central bank said growth of private consumption will be more moderate than previously expected due to household debt and a housing market slump.

The central bank's move follows similar adjustments by the finance ministry and the International Monetary Fund.

The central bank also lowered South Korea's inflation outlook to 2.7 percent from 3.2 percent.

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