NSP NEWS

(Seoul=NSP News Agency) Hanah Choi Journalist = South Korea's central bank cut its estimate for gross domestic growth to 3.0% for this year and cut inflation outlook to 1.4%.

Its estimate for gross domestic growth for this year was cut 0.2% from 3.2%, its previous forecast of last October. It revised its inflation forecast to 1.4% from the 1.7% predicted earlier, trimming 0.3%.

Lee, BOK governor, stated over the background of revision that, "risk of cost variables were expanded as the situation of international finantial market changed lately in domestic and foreign economic condition." And that "stock prices fall substantially and won-dollar exchange rate rise considerably owing to instability of China's foreign exchange market and low international oil prices.”

He assessed that "China's financial instability such as weak yuan and sudden drop in stock, and etc, has had significant impact on global financial market" and that "China risk is nothing new but it seems that international financial market showed big response to a ‘bigger-than-expected’ fluctuation."

Governor Lee emphasized that 3.0%, its estimate for gross domestic growth for this year, would not be ‘rosy(prosperous) outlook’ as some professed.