Bank of Korea cuts growth outlook as scandal hits economy
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South Korea's central bank has lowered its forecast for the country's growth in 2017 due partly to the fallout from a massive influence-peddling scandal.
Bank of Korea said Friday that the economy will likely expand 2.5 percent this year, slower than its October prediction of 2.8 percent growth. It said Asia's fourth-largest economy will grow 2.8 percent in 2018.
The bank cited weak private consumption because of meager income growth, heavy household debts and the political uncertainties from the scandal.
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Parliament impeached President Park Geun-hye in December and the Constitutional Court is considering whether she should be removed from power permanently for allegedly letting a long-time friend secretly meddle in state affairs.