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S. Korean economy to grow 2.8 pct in 2013: IBs

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(Globalpost/GlobalPost)

SEOUL, June 10 (Yonhap) -- Global investment banks (IBs) have forecast the export-reliant South Korean economy to edge up 2.8 percent in 2013 amid the sluggish recovery posted by major countries, a report showed Monday.

According to the report by the Korea Center for International Finance, 10 major global IBs maintained their on-year economic growth outlook on the Asia's fourth-largest economy in June from a month earlier.

Barclays and Morgan Stanley projected the South Korean economy will grow 3.3 percent this year, while JP Morgan and BoA-Merrill Lynch suggested 2.5 percent and 2.6 percent, respectively.

Market watchers said the stagnant outlooks came as the slower-than-expected recovery of advanced countries is feared to give an adverse impact on business activities of the export-reliant country.

"The sluggish economic growth of China, South Korea's biggest trading partner, will have an adverse impact on the country," said Lee Sang-jae, a researcher at Hyundai Securities Co.

The IBs surveyed also left the economic growth outlook for the Philippines unchanged at 6 percent in June, while revising up that of Japan to 1.7 percent, compared to 1.3 percent estimated a month earlier.

The IBs revised down the economic outlooks on other major Asian countries including China, India and Singapore, the report also showed.

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