S&P predicts cooling of South Korean economy
International ratings agency Standard and Poor's (S&P) said that South
Korea's economy will probably show a gradual slowdown this year due to sluggish exports and insufficient recovery in domestic
consumption.
Economic growth will slow to 4.1% this year from an estimated 4.6% in 2004, according to the S&P report.
The agency's forecast for 2005 is lower than the 5% projected by the government, but higher than the Bank of
Korea's 4%.
The slowdown in export growth is attributed to weak global demand. Technology products will most likely suffer the brunt of the drop-off in demand.