Think tank forecasts 1 pct growth for S. Korea

SEOUL, Jan. 16 (Yonhap) -- South Korea's economic growth could slow to around 1
percent this year amid deepening global recession woes, the head of a state-run
think tank said Friday.

"Our economy is moving in line with average global economic growth," Hyun
Jung-taik, head of the Korea Development Institute (KDI) said on a radio program.
"The growth rate will be around 1 percent, though it could be either higher or
lower than that depending on global economic conditions."
His forecast is far lower than the government's objective of attaining 3 percent
growth and also below the central bank's 2 percent prediction.
Many investment banks and research institutes lowered their 2009 growth
projections for Asia's fourth-largest economy to the 1-percent range, with some
projecting the first recession in more than a decade.
In an earlier report, the think tank said the economy is facing increasing risks
of sliding into a recession as domestic demand and exports are sharply declining
in the face of a global economic downturn.
The KDI chief cautioned that it is "early" to talk about minus growth for this
year, but forecast that economic conditions will continue to be tough for the
time being as financial instability is taking its toll on the real economy.
kokobj@yna.co.kr