South Korea’s potential economic growth is expected to remain in the mid-3 percent range in the next five years due to sluggish investment and a lack of new growth engines, a parliamentary report said Thursday.

The National Assembly Budget Office forecast the nation’s potential growth rate to average 3.6 percent in the 2014-2018 period, which is the pace at which annual output can expand without pushing up inflation.

The potential growth rate had stood at 5.2 percent in 2001 and 2002, but fell to 4.8 percent from 2003 to 2005 due to decreasing domestic demand. It further slipped to 4.2 percent in 2006 and 2007, and tumbled to 3.5 percent since 2008.

Financial experts said the lower projection was in consideration of the tepid investment, shrinking workforce and weak domestic demand.

“The investment and productivity growth of the nation’s economic inputs have slowed compared to the period before the global financial crisis,” said Shin Hu-shik, the macroeconomic analyst at the parliamentary office. (Yonhap)