Anchor: The government revised down its growth forecast for the year by zero-point-two percentage points to one-point-four percent, citing reduced exports and investment. Inflation, meanwhile, is expected to slow down to three-point-three percent.
Choi You Sun reports. 

Report: The government released a report on its economic policy direction for the second half of 2023 that included a downward revision for this year's growth outlook from one-point-six to one-point-four percent.

At a press briefing on Tuesday, first vice finance minister Bang Ki-sun said the reduction comes in light of an expected slowdown in the nation's exports and investments in the second half of the year.

The revised outlook is lower than the forecast of one-point-five percent from the state-run Korea Development Institute, the Organisation for Economic Cooperation and Development and the Asian Development Bank.
 
Officials have now projected exports this year to fall by six-point-six percent compared to last year, a bigger drop than the previous forecast of four-point-five percent.

Facilities investment is expected to fall one-point-two percent this year, driven mainly by a contraction in the semiconductor industry.

Inflation, meanwhile, is projected to stand at three-point-three percent, zero-point-two percentage points lower than the previous forecast.

Citing the stabilization of international energy and grain prices behind the slowing inflation, the vice minister pledged course correction as necessary upon signs of increases in food and oil prices.

Private consumption is forecast to jump two-point-five percent with the predicted expansion of new hires by 320-thousand, up from 100-thousand as previously expected, improved consumer sentiment and accumulated savings.
Choi You Sun, KBS World Radio News.