Anchor: A state-run economic think tank predicts South Korea’s economy will grow less than three percent this year and next year.  It also forecast that the nation will see its exports remain brisk but growth in domestic consumption will slow down. Our Bae Joo-yon has more. 

Report: The Korea Development Institute (KDI) predicted on Thursday that the South Korean economy will expand two-point-nine percent this year. The figure is the same as the institute’s forecast released last December and down one-tenth of a percentage point compared to the government’s outlook. 

According to the KDI’s latest prediction, the economy is expected to see its growth rate slip back to the two-percent range after having reached three-point-one percent last year. 

The institute said it issued the latest outlook even though consumption is expected to improve and growth in exports is likely to expand this year on the back of continued growth in the global economy as investments are projected to be sluggish. 

The agency forecast that economic growth will slip to two-point-seven percent next year due to a slowdown in private consumption and investment. However, it predicted that exports will remain on an upward track.

As for the current account surplus, the KDI said that it will decrease this year compared to last year even if exports expand due to aggravating trade conditions. 
 
With higher oil prices, consumer prices are predicted to climb by more than one percent.
 
The think tank forecast that the unemployment rate will remain similar to that of last year while the growth in the number of people with jobs will be small due to demographic change and industrial restructuring. 
 
The institute said that the South Korean economy is faced with risk factors both at home and abroad, including a drop in asset values, the fast-growing Chinese economy and falling prices of flagship export items, such as semiconductors.

Bae Joo-yon, KBS World Radio News.