The government is expected to lower its economic forecasts when it releases economic policies for the second half next month.
 
According to the Finance Ministry, the government will likely announce its economic policy directions for the second half at the end of June and will present its revised estimates on economic growth, employment and exports.
 
The International Monetary Fund slashed its growth forecast for the world economy for this year to three-point-two percent in April, down by four tenths of a percentage point from its projection issued in October last year.
 
The slashed projection will likely drag down South Korea’s growth outlook as well.
 
The country’s gross domestic product expanded four tenths of a percent in the first quarter, the lowest in three quarters.
 
With the gloomy prospects at home and abroad, major institutes lowered their growth forecasts for South Korea for this year to the two percent level. The state-run Korea Development Institute is expected to follow suit late this month.