S. Korean economy to grow 4.2 pct in H2: think tank

SEOUL, Aug. 15 (Yonhap) -- The South Korean economy is expected to expand 4.2
percent on-year in the second half of 2010 and grow 5.8 percent for the whole of
this year, a local think tank predicted Sunday.
The second-half growth forecast by the Korea Institute of Finance (KIF) is down
from its earlier estimate of 4.9 percent made in April, but the full-year
prediction remains unchanged.
The whole-year projection is in line with forecasts made by the government and
the Bank of Korea. The government has predicted Asia's fourth-largest economy
will gain 5.8 percent this year, while the central bank expects a 5.9 percent
expansion.
The KIF said South Korea will likely experience a buildup in inflationary
pressure in the July-December period, with its consumer prices rising 3.2 percent
on-year, compared with a 2.6 percent increase in the first half.
The expected inflation rate hovers above the central bank's containment goal of 3
percent.
According to the KIF, the growth in consumer spending is expected to slow to 3
percent in the second half from 5 percent in the first six months.
Corporate capital spending will likely grow 11.2 percent in the second half,
sharply down from a 29.4 percent jump six months earlier.
South Korea's export growth is projected to cool to 11.5 percent in the second
half from 15.2 percent in the first half, with its imports likely to increase
13.9 percent, compared with a 19.9 percent surge six months earlier, the think
tank said.
(END)