South Korea‘s economy is expected to grow 2.6 percent this year and 2.8 percent next year, according to the Organization for Economic Cooperation and Development on Wednesday.
This year’s forecast has remained unchanged, taking into account the country‘s improving exports and consumer sentiment.
Next year’s forecast has been revised down from its initial projection of 3 percent seven months ago.
The OECD said that the faster world trade leading to a boost in exports and business investment will help offset a gradual decline in the growth of residential investment.
The OECD did note that external and internal risks will continue to burden Asia‘s fourth-largest economy. The challenges range from trade protectionism undermining the Korea-US free trade agreement, diplomatic tension with China that has spilled over to Korean businesses, as well as the country’s high household debt.