UPDATE 1-S.Korea c.bank keeps 2011 growth fcast at 4.5 pct

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SEOUL, Dec 10 (BestGrowthStock) – South Korea’s central
bank on Friday maintained its forecast for next year’s
economic growth while slightly raising the growth projection
for this year on robust facility investment and private
spending.

The Bank of Korea expects Asia’s fourth-largest economy to
expand by a real 4.5 percent in 2011 after growing by 6.1
percent in 2010, which follows a mere 0.2 percent rise in 2009
and would mark the fastest pace in nearly a decade.
The revised forecast indicates South Korea’s economy
would post the third-highest growth among members of the
Organisation for Economic Co-operation and Development in 2011
after Turkey and Chile.
“The economy is expected to show slower growth in the
first half (of 2011) than in the latter half due to reduced
budget spending during the period compared to 2010,” the Bank
of Korea said in a statement.
“And the momentum for economic recovery in the
advanced countries including the United States will gain
strength in the second half.”
In July, the central bank forecast the
export-dependent economy would grow 4.5 percent in 2011 after
expanding by 5.9 percent in 2010. [ID:nTOE66900P]
For the current quarter, the economy would expand by
a seasonally adjusted 0.4 percent from the third quarter when
it rose 0.7 percent, an official at the Bank of Korea said.
Annual consumer inflation will quicken to an
average of 3.5 percent in 2011 from a projected 2.9 percent in
2010, the central bank said, compared with the central bank’s
target band between 2 percent and 4 percent.

The forecasts came a day after the central bank’s
projections of rising inflation and solid economic growth were
taken by analysts as suggesting the Bank of Korea will
continue to raise interest rates early next year.
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(Reporting by Kim Yeonhee; Editing by Yoo Choonsik)

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UPDATE 1-S.Korea c.bank keeps 2011 growth fcast at 4.5 pct