BoK sees lower SKorea's growth

BoK sees lower SKorea's growth

SEOUL: South Korea's central bank on Friday said economic growth in the first quarter to March would be much lower than expected because of uncertainty linked to the buildup towards the just begun war on Iraq.

The central Bank of Korea (BoK) said the year-on-year growth rate for the first quarter would be below five percent, down from the earlier forecast of a 5.6 percent expansion.

"The first quarter GDP growth rate will turn out to be much lower than the previous quarter. It will probably fall below five percent," Bok Director Cho Sung-Jong said.

The 2002 fourth quarter GDP growth rate was 6.8 percent.

"The growth target for the whole year will be readjusted, with the delayed outbreak of the war taken into account," he said.

Bank officials said the outbreak of war had been long expected, but uncertainty lasting for several months about when a strike would come had affected the growth rate.

Earlier this month, the bank warned geopolitical risks could push growth below five percent this year, but ruled out measures to boost activity. -- AFP