South Korea’s growth potential for this year falls in the upper 3 percent range this year despite a slowdown in the global economy, the head of the country’s central bank said Wednesday.
In a meeting with local CEOs, Bank of Korea Gov. Kim Choong-soo said the number for 2012 is slightly lower than the overall growth potential for the country that stands at 4 percent.
“This is not good, but is not too bad in light of recent economic developments around the world,” he said.
Growth potential is the level of economic expansion a country can attain without triggering inflationary pressure.
The remarks come a day after the International Monetary Fund cut South Korea’s growth forecast for this year from 3.5 percent to 3.25 percent. The BOK also revised the country’s growth prediction from 3.7 percent to 3.5 percent in April, citing persistent eurozone woes and slower than expected growth in the United States and China.
Kim, meanwhile, expressed concerns about 2013, saying that this year’s sluggish conditions may impact growth down the road.