Bank of Korea Reduces Growth Forecast for 2018

SEOUL – The Bank of Korea has revised down its gross domestic product forecast for this year while maintaining its inflationary outlook as economic growth is uneven.

The central bank expects an expansion of its economy by 2.9% in 2018 Judge BOK Lee Ju-yeol said Thursday at a press conference

that the bank will Is expecting consumer prices to rise 1.6% this year, unchanged from its previous projection, Mr Lee said.

Earlier on Thursday, the central bank kept its key rate unchanged at 1.50%, although a tighter policy could be on the horizon after its first rate increase in more than six years in November .

wait for further signs of economic improvement before countering its support for growth.

Exports – which account for half of the South Korean economy – fell in June after a brief rebound the previous month. Increasing worries about South Korea's trade-dependent economy due to worsening trade friction between China and the United States.

Inflation remains moderate due to low private consumption. In June, the consumer price index rose more than expected 1.5%, well below the Bank's 2% annual inflation target.

The South Korean economy grew by 3.1% last year. Inflation averaged 1.9% for the full year 2017.

– Write to Kwanwoo Jun at [email protected]