Think tanks lower S. Korea's 2016 economic growth outlook

Local economic think tanks on Thursday revised down outlooks for South Korea's economic growth in 2016, boosting worry about a prolonged economic slump of the economy. The Korea Institute of Finance lowered outlook for this year's gross domestic product (GDP) growth in South Korea to 2.6 percent from the previous 3.0 percent.

LG Economic Research Institute also cut its growth outlook by 0. 1 percentage point to 2.4 percent. The downward revision came after the International Monetary Fund (IMF) downgraded South Korea's growth outlook from 3.2 percent to 2.7 percent on Tuesday.

South Korean Finance Minister Yoo Il-ho has expected the 3 percent growth to be achieved this year, but there is no think tank found forecasting over 3 percent of growth, except the state- run Korea Development Institute (KDI) predicting a 3 percent economic expansion.

Hyundai Research Institute predicted a 2.8 percent growth this year, with the Korea Economic Research Institute's outlook set at 2.6 percent. Bank of Korea (BOK), South Korea's central bank, is widely expected to revise down its current growth outlook of 3 percent during the upcoming monetary policy meeting scheduled for April 19.

The Organization for Economic Cooperation and Development (OECD) set its growth outlook for South Korea at 3.1 percent, but the figure announced in November last year is expected to be revised down in the near future. The Asia Development Bank (ADB) slashed its 2016 outlook for South Korea's economy to 2.6 percent in late March from an earlier estimate of 3.3 percent forecast in December last year.

South Korea's economy expanded 2.6 percent in 2015, tumbling from a 3.3 percent growth in 2014. Pessimistic forecasts over South Korea's economy were mainly attributable to delayed global recovery. South Korea's exports, which account for about half of the economy, tumbled 18.9 percent in January on a yearly basis, before posting falls of 12.2 percent in February and 8.2 percent in March respectively.

For the first 10 days of April, the overseas shipments plunged 24.7 percent compared with the same period of last year, according to customs data. Massive household debts weakened domestic consumers' demand for spending money, resulting in sluggish corporate investment in the midst of soft private consumption.