South Korea's central bank on Thursday lowered its 2017 economic growth outlook by 0.1 percentage point to 2.8 percent after freezing interest rates at a record low.
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.
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 BOK'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 predicting their outlooks at 2.5 percent and 2.2 percent respectively.
Governor Lee said the downward revision was made to reflect long-term structural problems and short-term risk factors facing the South Korean economy.
Lee cited growing uncertainties from Brexit, or British referendum to leave the European Union (EU), and the expected interest rate hike in the United States as major external risk factors.
The ongoing restructuring in shipbuilding and shipping lines was cited as key risk factors in the domestic front that would weaken sentiment among economic subjects.
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