The South Korean economy is expected to expand 3.6 percent in 2015 from this year amid sluggish private consumption and low inflation, a private think tank forecast Sunday.

The Hyundai Research Institute predicted Asia’s fourth-largest economy will likely grow 3.5 percent in the first half of next year and gain 3.6 percent in the second half.

The think tank’s 2015 outlook is the same as its forecast of 3.6 percent for this year.

HRI’s growth forecast for next year, however, is lower than a 4 percent prediction made by the government and the Bank of Korea in July.

The think tank said the country’s consumer spending will remain in the doldrums next year due to a slowdown in growth of real wages and the increased household debt-servicing burden.

“Concerns over deflation will likely persist in the coming year due to the continued trend of weak economic growth and low consumer inflation,” HRI said.

South Korea’s consumer prices are expected to climb 1.9 percent next year from this year, the think tank said, adding inflation will likely lag for a considerable period of time after 2015 due to delayed economic recovery, the continued strength of the local currency against the U.S. dollar and a downtrend in raw materials prices. (Yonhap)