South Korea cuts 2017 growth forecast to 2.6 percent

SEOUL, South Korea, Rabi’I 30, 1438, December 29, 2016, SPA — South Korea has revised down its growth outlook for 2017 citing increased uncertainties in the United States and a sagging recovery in domestic consumption, according to AP.
South Korea’s finance ministry said Thursday that Asia’s fourth-largest economy will likely expand 2.6 percent next year, the same pace as its outlook for 2016, down from its earlier forecast of 3.0 percent.
The ministry cited the pace of interest rate increases in the U.S. as one factor for concern. President-elect Donald Trump’s still to be decided trade policies are another.
At home, spending has weakened amid a major political scandal that led to President Park Geun-hye’s impeachment.
The report said South Korea likely will add fewer jobs next year than in 2016.
The government is planning a 20 trillion won ($16.5 billion) stimulus package.
–SPA
03:04 LOCAL TIME 00:04 GMT