SEOUL, Jan 4: The South Korean government on Thursday lowered its economic growth forecast for 2007 and announced plans to bring forward budget spending to counter the expected slowdown.

The Ministry of Finance and Economy forecast the economy would expand 4.5pc this year, down from its earlier forecast of 4.6 per cent and after an estimated 5 per cent growth rate last year.

The revised forecast reflected concerns about cooling exports, weak private sector spending, and the won rise against the dollar and a slowdown in the US economy, it said.

The ministry said North Korea's nuclear programmes and this year's presidential elections could also present uncertainties and hindrances to growth.

To sustain growth, the government will front-load 56 per cent of its budget in the first half of this year while increasing investment in social infrastructure by 18 per cent.—AFP