South Korea's economy is projected to expand 2.3% this year, slowing from last year's 2.6% growth, largely due to an ongoing corporate revamp drive and tepid domestic demand, a private think tank said Thursday.

According to the Korea Economic Research Institute (KERI), Asia's fourth-largest economy will see its growth further decelerate to 2.2% next year, South Korea's News Agency (Yonhap). "Amid a slowdown in the global economy, a recovery in domestic demand is weakening in the face of ongoing corporate restructuring," said the institute. 

The South Korean economy is faced with post-Brexit uncertainties, imminent rate hikes in the US and a slowdown in China, which will limit the implementation of monetary and fiscal policies here.

The KERI said consumer prices will rise 0.8% this year, and 1.1% next year, maintaining a trend of low prices. The country's current account surplus is expected to decline to US$98 billion next year from this year's estimated $102 billion. 

Source : QNA