Global investment banks (IBs) forecast that South Korea's economy will advance in the mid 3-percent range next year, data showed Wednesday, lower than growth estimates by the Seoul government and institutions.
Average projections from 34 major IBs show South Korea's gross domestic product (GDP), the broadest measure of economic performance, growing 3.6 percent next year, according to Bloomberg data. Last year, the Korean economy grew 3 percent and was forecast to expand in the mid-3 percent range this year.
Their latest outlook for Asia's fourth-largest economy next year is lower than the Korean government's 4 percent and the Bank of Korea (BOK)'s 3.9 percent.
Foreign investors cited still shaky domestic demand and weakening exports, hit by the Japanese yen's slide, as major reasons for their relatively low growth projections.
Morgan Stanley projected the highest growth at 4.1 percent for 2015, followed by Societe Generale with 4 percent, JP Morgan Chase with 3.9 percent, and Citi Group with 3.8 percent.
BNP Paribas and UBS offered an estimate of a 3 percent expansion for Asia's fourth-largest economy next year, the lowest among other institutions, followed by HSBC with 3.1 percent.
Market watchers say the BOK and the government may be forced to further trim their growth outlook, largely due to still weak domestic demand. (Yonhap)
