A regional macroeconomic research organization has assessed that inflation in South Korea has peaked, forecasting the economy will grow one-point-nine percent next year. 

According to Seoul’s finance ministry on Friday, the ASEAN Plus Three Macroeconomic Research Office (AMRO) presented the assessment after its annual visit to South Korea from November 28 to December 9.

Kevin Cheng, who led the AMRO team for the visit, reportedly said that the Korean economy is forecast to slow to one-point-nine percent next year after growing two-point-six percent this year.

In April, the AMRO projected a three percent growth of the economy for this year and two-point-six percent for next year.  

Explaining the lowered outlook, the organization cited that private consumption and exports are forecast to decrease and investments are likely to remain weak amid tighter financial conditions and dropping external demand.

The AMRO said that inflation is expected to gradually decline to an average of three percent next year from five percent this year.