Global investment bank HSBC has forecast South Korea’s gross domestic product(GDP) to grow two-point-two percent this year and expected the Bank of Korea(BOK) will cut its key interest rate during the second quarter.

Frederic Neumann, managing director of HSBC's Asian Economic Research, presented the projections during a meeting with reporters on Tuesday.

Newmann said that South Korea’s GDP growth is expected to post two-point-two percent this year and two-point-four percent next year, citing gloomy prospects for exports due to slowed growth in the U.S., Europe and China.

The HSBC official said that the BOK is predicted to cut its key rate by a quarter of a percentage point to boost the economy and facilitate households' debt repayments.

Newmann, however, said that South Korea has no immediate risk of a financial crisis due to its strong fundamentals.