Economy Forecast to Grow 4.8% in 2008

The economy is expected to grow 4.8 percent in 2008, a state-run think tank said Monday,

revising its previous forecast of 5 percent growth as higher crude and raw material costs as well as sluggish domestic consumption continue to weigh on Asia's fourth-largest economy.

"The economy seemed to have ended its expansion trend late last year and is now moving into a slowdown phase, though it is taking place at a steady pace," the Korea Development Institute said.

"The economy will grow in the mid-5-percent range during the first half, while the expansion rate will likely fall into the mid-4-percent range in the latter half," it added.

The institute also downgraded its outlooks for consumer spending and corporate investment. Domestic consumption will grow 3 percent for this year, down from its earlier projection of 4.5 percent, while facility investment growth is estimated to decelerate to 2.4 percent from 6.2 percent.