The South Korean economy is expected to attain 2.6% growth this year, the same rate recorded in 2015, as sluggish domestic spending and shrinking exports continue to weigh on Asia’s fourth-largest economy, a local think tank said Monday, Yonhap reported. Its growth will likely slow to 2.4% in the second half following an estimated 3% growth in the first half, the Korea Institute of Finance said in a report. “Private consumption is expected to post 1.4% growth in 2016, lower than 2.2% in the previous year, as the consumption tax cut has expired (at the end of the first quarter),” it said. The nation’s economy has also struggled to boost exports, another pillar of its growth. Exports dipped 10.2% in July from a year earlier, the 19th consecutive month of decline amid the local currency’s appreciation. The KIF took note of the government’s aggressive efforts to prevent a further downturn through the first quarter especially through a rate cut in June and the frontloading of massive extra budget.
