Amid concerns over a slowing economy,... a government think tank has slightly lowered its growth forecasts for the Korean economy for both this year and the next.<br />It has called for an expansionary fiscal policy to help revive the economy.<br />Yoon Jung-min reports.<br />South Korea's state-run research institute has lowered the country's growth rate for this year due to slowing investment and external risks.<br />The Korea Development Institute said on Wednesday that it has lowered South Korea's growth rate to 2 percent for 2019,... down zero-point-4 percentage points from its earlier forecast in May.<br />The institute said slowing investment has dragged down the manufacturing sector and private consumption.<br />Global downside risks include the U.S.-China trade war,... which has been hurting Korea's exports for 11 straight months.<br />The research institute has also cut the growth projection for next year to 2-point-3 percent,... down zero-point-2 percentage points from its earlier figures.<br />The institute, however, said domestic consumption and employment figures should pick up a bit next year.<br />It also said exports and facility investment are forecast to gradually recover based on growing demand for semiconductors.<br />"We have taken into account the likely demand for investment in key industries centered around semiconductors if there's a rise in demand overseas."<br />Despite a rather positive outlook for next year,... the KDI warned of uncertainties from the U.S.-China trade conflict, a possible no-deal Brexit, and tensions in the Middle East.<br />It has called for the government to maintain its expansionary fiscal policy and for the central bank to keep the economy healthy.<br />The institute also stressed the importance of shifting the economic structure toward future industries, such as artificial intelligence and autonomous vehicles.<br />Yoon Jung-min, Arirang News.<br />
