[THE INVESTOR]  South Korea’s economy is likely to grow 2.3 percent this year, slightly falling from last year’s 2.6 percent growth, a private think tank said on Sept. 29.

According to the Korea Economic Research Institute, the economy will see its growth further decelerate to 2.2 percent next year.

“Amid a slowdown in the global economy, a recovery in domestic demand is weakening in the face of ongoing corporate restructuring,” said the institute.

The South Korean economy is faced with post-Brexit uncertainties, imminent rate hikes in the US and a slowdown in China, which will limit the implementation of monetary and fiscal policies here.

The KERI said consumer prices will rise 0.8 percent this year, and 1.1 percent next year, maintaining a trend of low prices. The country’s current account surplus is expected to decline to US$98 billion next year from this year’s estimated $102 billion.

(theinvestor@heraldcorp.com)