Private think tank says S. Korea's economy to grow 2.9 pct this year

SEOUL, March 6 (Yonhap) -- South Korea's economy is likely to grow 2.9 percent this year as Asia fourth-largest economy loses momentum on weak exports and slowing domestic demand, a private research institute said Wednesday. The growth outlook released by the Korea Economic Research Institute (KERI) is in line with a forecast by the Bank of Korea and falls below the 3 percent level for the second year in a row. Last year, South Korea's economy expanded 2 percent. The central bank lowered its outlook for South Korea from 3.2 percent to 2.8 percent in January. The South Korean government also cut its growth projection from 4 percent to 3 percent in December. Last month, the International Monetary Fund slashed its 2013 growth outlook for South Korea's economy to 3.2 percent, down from its prediction of 3.6 percent in October. The KERI said South Korea's export slowdown amid a strong won and the Japanese yen's recent descent is to blame for the lower economic outlook. A strong won hurts South Korea's exporters by making their products more expensive in overseas markets. Exports, which helped transform South Korea into an economic powerhouse in Asia from the ashes of the 1950-53 Korean War, account for more than half of South Korea's gross domestic product. entropy@yna.co.kr (END)