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Korea cuts 2017 growth outlook on uncertainties, Note 7

Staff Writer | October 13, 2016
South Korea's central bank lowered its 2017 economic growth outlook by 0.1 percentage point on worries about uncertainties at home and abroad as well as Samsung Electronics' decision to discontinue Galaxy Note 7 smartphone.
South Korea's central bank
Economy in Asia   2017 growth forecast continued to fall
Bank of Korea (BOK) Governor Lee Ju-yeol told a press conference after the regular rate-setting meeting that the bank's growth outlook for next year was downgraded to 2.8 percent from 2.9 percent forecast three months earlier.

The BOK's 2017 growth forecast continued to fall from 3.2 percent estimated in January to 3.0 percent in April and 2.9 percent in July. South Korea's economy expanded 3.3 percent in 2014, before tumbling to a 2.6 percent increase in 2015.

Outlook for this year's growth was unchanged at 2.7 percent. The bank expected consumer prices to rise 1.0 percent this year and 1.9 percent next year each.

The bank's 2017 growth outlook of 2.8 percent is still high compared with figures estimated by public and private economic think tanks.

The state-run Korea Development Institute (KDI) set its growth forecast for next year at 2.7 percent, with Hyundai Research Institute and LG Economic Research Institute putting their outlooks at 2.5 percent and 2.2 percent respectively.