S Korea cuts growth forecast to lowest in decade

South Korea's central bank cut its growth forecast to two percent, which would be the weakest rate in a decade as the economy is battered by trade disputes.

The world's 11th-largest economy is highly dependent on international commerce but is grappling with the fallout of a prolonged China-U.S trade dispute and embroiled in a spat of its own with neighbouring Japan.

The Bank of Korea cut its 2019 growth forecast from 2.2 percent to two percent, governor Lee Ju-yeol, told, also trimming its prediction for next year to 2.3 percent from 2.5 percent. The two percent figure would be the slowest expansion since 2009, when the country posted 0.8 percent growth in the wake of the global economic crisis.

In a statement, the BOK said exports were facing continuing 'sluggishness', while domestic consumption growth had also weakened.

The numbers bring the BOK's forecasts into line with the International Monetary Fund.