Bank of Korea Cuts 2011 Growth Forecast on Demand Slowdown

The Bank of Korea lowered its economic growth forecast for this year on an expected slowdown in domestic demand, while raising the projection of inflation to its target limit.

South Korea’s economy will expand 4.3 percent, compared with the 4.5 percent growth estimated in April, the central bank said today in a statement. Consumer prices are expected to rise 4 percent, higher than the earlier 3.9 percent gain forecast.