SKorea cuts growth estimate

SKorea cuts growth estimate

SEOUL (AFP): South Korea's economy has come to a virtual
standstill, with the central bank Thursday drastically revising
down its previous third quarter growth estimate of 3.0 percent.

The Bank of Korea (BoK) said gross domestic product (GDP) was
now expected to expand by only 0.5 percent in the three months to
the end of September, down year-on-year from 2.7 percent in the
second quarter and 3.7 percent in the first.

"We have not yet officially readjusted ... the GDP growth
forecast, but the third quarter growth rate is likely to be a lot
weaker than earlier forecasts," said a senior BoK official, who
gave the 0.5 percent forecast.

He blamed the slowdown on weaker exports and sluggish
corporate investment.

The central bank on Wednesday made its biggest ever interest
rate cut in an attempt to jolt the economy into life after last
week's terrorist attacks in the United States.

BoK officials also said full-year growth is expected to be far
lower than the 3.8 percent it projected in June, but declined to
provide specific projections.