S. Korean economy likely to fall less than 1 pct this year: BOK head

SEOUL, Oct. 15 (Yonhap) -- South Korea's top central banker said Thursday the local economy is likely to fall less than 1 percent this year, better than its previous forecast of a 1.6 percent fall.

"The annual growth rate of the Korean economy is forecast to stand between minus
one and zero this year," Bank of Korea (BOK) Gov. Lee Seong-tae said at a
parliamentary interpellation session. "Next year, the local economy is likely to
grow between 3 and 4 percent.
"In the fourth quarter, the Korean economy is not likely to be as strong as that
in the third quarter. But the economy is likely to post positive growth in the
final quarter of this year," Lee said.
His remarks came as the Korean economy is recovering at a faster-than-expected
pace on the back of aggressive fiscal spending and rate cuts. But uncertainty
about a global economic recovery and sluggish job markets still remain as major
risks to the economy.
"The Korean economy will likely continue its mild recovery phase," Lee said,
dismissing a possibility that the economy may fall into a double-dip downturn,
which means the momentum of the economy declines following a mild recovery.
sooyeon@yna.co.kr
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