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THE INVESTOR] South Korea’s economic growth rate will come in at 2.5 percent this year, at drop further in 2017, a think tank projected on July 12.
In its second half outlook report, the LG Economic Research Institute projected a growth of 2.1 percent for the final stretch of the year, bringing the annual average to 2.5 percent. For 2017, LGERI projected a growth rate of 2.3 percent. The government’s economic growth rate projection for 2016 is 2.8 percent.
The report forecast that dropping exports will damage local companies’ profitability, which will in turn further weigh down facilities investment.
Domestic spending will also slow down, and the property market will be plagued by concerns about oversupply, the report said.
By Choi He-suk (
cheesuk@heraldcorp.com)
