S. Korean economy to grow 3.6 pct next year: report

SEOUL, Sept. 21 (Yonhap) -- South Korea's economy is expected to grow 3.6 percent in 2012, slowing from this year's estimated 4 percent expansion, as exports lose steam in the wake of the global economic downturn, a local think tank said Wednesday.
The Samsung Economic Research Institute (SERI) said major economies such as the U.S. and China are expected to see a drop in their growth rates, which will lead to a decline in exports by Asia's fourth-largest economy.
It predicted that the world economy would grow 3.5 percent next year after expanding 3.8 percent this year. In 2010, the global economy gained 4.9 percent.
"The U.S. economy may lose its growth momentum down the road, but it is unlikely to relapse into a recession," the report said. "Also, the eurozone economy is likely to suffer a drop in its pace of growth."
Domestic demand is expected to grow 2.7 percent next year, also slowing from this year's estimated 2.8 percent rise, as government spending is likely to decrease and credit easing is unlikely to continue into next year, it said.
Inflation will slow to 3.4 percent in 2012 from this year's predicted 4.4 percent, as prices of oil and crops are expected to decline, it added.
Earlier, the country's finance minister said the government may consider lowering its forecast of the economy's growth rate for next year due to persistent downside risks. The finance ministry had predicted that the economy would likely grow 4.8 percent in 2012. The ministry projected a 4.5 percent growth rate for this year.
The think tank said the local currency will trade at an average of 1,060 won against the U.S. dollar next year, compared with this year's estimated average of 1,093 won, it said.
Oil prices are likely to fall to US$90 per barrel next year from this year's projected $105 per barrel, it forecast.