S. Korean economy to slow further in H2: think tank

[THE INVESTOR] The country’s economic growth will slow further during the second half of the year, the POSCO Research Institute projected on Aug. 18.

In its second half outlook report, the institute projected a growth rate of 2.2 percent, down 0.8 percentage point from the 3 percent growth recorded for the first half.

For the year as a whole, the institute projected a growth rate of 2.6 percent, 0.1 percentage point lower than that projected by the Bank of Korea. 

“It is deemed that economic slowdown is becoming prolonged, with exports and manufacturing sectors shrinking while domestic demand falling,” the think tank said.

The think tank said that rising household debt and fallout from the UK’s decision to leave the European Union would further weigh on consumer spending in the second half of the year.

POSCO’s think tank said the inflation would also remain low, projecting an inflation rate of 1 percent for the final six months of the year.

Choi He-suk (cheesuk@heraldcorp.com)