SKorea cuts growth forecast, plans stimulus
Details of stimulus spending will be announced next month.
SEOUL (AP) - South Korea s government cut its forecast for growth in Asia s fourth-largest economy this year as exports stumble due to muted global demand and a weaker yen.
The finance ministry said Thursday that South Korea s economy will expand 2.3 percent this year. Three months ago it forecast 3 percent growth for 2013.
South Korean manufacturers are struggling with weak overseas demand and increased competition from Japan.
The ministry said it will aid an economic recovery with a stimulus plan and spending more than 60 percent of the annual budget during the first half of the year.
Details of stimulus spending will be announced next month.
Hyundai Research Institute estimates South Korea needs 11 trillion won ($9.9 billion) of extra government spending to add half a percentage point to growth.
