The OECD has lowered its 2019 growth forecast for the South Korean economy to two.one percent down point-three-percentage-points compared to its earlier estimate in May.
The OECD's Interim Economic Outlook report for September said the South Korean economy will grow at a slower pace than its previous forecast of 2.4 percent, citing persistent weak global trade and soft import demand in China.
However, the OECD forecast the South Korean economy to grow two.three percent in 2020, faster than this year, saying the government's recent efforts on macroeconomic policies could lead to increased domestic demand.
The latest downward revision comes amid concerns over slowing exports caused by the ongoing U.S.-China trade war and a trade row between South Korea and Japan.
However, the South Korean government stressed that the OECD forecast is relatively good compared to other member states with similar-sized economies to South Korea.
The OECD also cut its growth outlook for the world economy for this year and next year, to 2.9 percent, and 3 percent respectively, each were downwardly revised by point-three percentage points from its May forecast.
The OECD pointed out that such figures would be the weakest annual growth rates since the global financial crisis in 2009.
The report cited trade policy tensions as the major factor for the cuts, and stressed the need for collective efforts to stop the build-up of trade-distorting tariffs and to restore a transparent rules-based system that encourages businesses to invest.
Kim Mok-yeon, Arirang News.