Anchor: The Organization for Economic Cooperation and Development(OECD) has significantly lowered South Korea’s economic growth forecast for next year to two-point-six percent. The Paris-based institute mentioned the worldwide expansion of trade protectionism and uncertainty surrounding domestic politics as major risk factors for Asia’s fourth-largest economy.
Kim Bum-soo reports.  
 
Report: In its latest global economic outlook released on Monday, the Organization for Economic Cooperation and Development(OECD) expected that South Korea will post a growth of two-point-six percent next year.

It is down by zero-point-four percentage points from its previous prediction in June and down by one percentage point from last year's projection.

The OECD cited higher chances of a global trade slump as risk factors for the export-driven economy. On top of Samsung Electronics' Galaxy Note 7 ordeal, the OECD also pointed to the domestic political instability following the Choi Soon-sil scandal and the recently enacted antigraft law as factors behind the sluggish forecast. 

As a solution to prop up the economy, the intergovernmental organization proposed that South Korea reform its economic structure as well as implement expansionary macroeconomic policies.  

South Korea's growth forecast for this year was kept at two-point-seven percent from its earlier prediction in June. 

The institute said South Korea's economic growth will recover to three percent in 2018, citing growing expectations in the recovery of global trade.

As for the outlook across the world, the OECD said the global economy will grow two-point-nine percent on average this year and three-point-three percent next year.
Kim Bum-soo, KBS World Radio News.