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