eFM News

[Anchor]

The South Korean economy grew at the slowest pace in six years last year as countries around the world revised down their growth rates.

According to the Bank of Korea, the nation's economy expanded 2.7 percent in 2018, slowing down from the 3.1 percent expansion in the previous year.

Claudia Kim has more.

[Reporter]

This is the most sluggish growth since 2012, however, it met the central bank's earlier forecast of 2.7 percent.

The economy last year was mainly supported by exports, private consumption and government spending, with the fourth quarter showing a bit of a silver lining with a jump of 1 percent on-quarter, largely boosted by government expenditures.

Overall, the economy was offset by sluggish corporate investment, especially in construction and facility.

The data comes as the International Monetary Fund cut its global growth forecast from October, signaling a possible drag on the future of Asia's fourth largest economy.

On Monday, the IMF cut its estimate to 3.5 percent this year, from its earlier prediction of 3.7 percent, citing heightened trade tensions and rising interest rates.

Among the key concerns is China, one of South Korea's largest trade partners, which reported a growth of 6.6 percent in 2018, the weakest in almost three decades.

Britain's messy split from the European Union is no help either, as Seoul's government officials scurry to clinch a free trade agreement with the U.K. as companies could suffer under a possible no-deal Brexit.

With the dismal forecast, the BOK is expected to stand pat on the key rate when the review committee meets this Thursday.

Claudia Kim, eFM News.■