South Korea cuts forecast for business growth - 13 WTHR Indianapolis

South Korea cuts forecast for business growth

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SEOUL, SOUTH KOREA -

South Korea has dialed back its economic growth forecast as Europe's debt crisis dampens demand for the country's exports.

The finance ministry said Thursday that the gross domestic product will likely expand 3.3 percent this year, down from an earlier projection of 3.7 percent.

The ministry's statement said "the worsening overseas situation including Europe's fiscal crisis is delaying a recovery."

But it also said that "an improved job market during the second half of this year and slowing consumer price rises will drive a recovery on the back of domestic demand."

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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