1.0% growth rate forecast for S. Korea by foreign financial firm

An overseas research institute has forecast that South Korea's real GDP growth rate this year could fall to one percent.

UK-based Capital Economics on Thursday lowered its forecast for South Korea's economic growth rate this year from one-point-one percent to one percent.

The institute cited the ongoing political turmoil and the slump in the real estate market.

It added that due to the economic slowdown, the Bank of Korea is expected to lower the base interest rate by one percentage point this year.

The average growth rate forecast by major overseas investment banks is one-point-six percent, with Capital Economics' forecast being the lowest.