Private spending recovery to gather steam: BOK report

South Korea's private spending is expected to gather momentum down the road, although its pace may be slower than expected, a report from the Bank of Korea (BOK) showed Friday. According to the report, the country's domestic demand has been lackluster amid high inflation, heavy indebtedness and a slump in businesses, especially self-employed merchants. In its latest economic outlook, the BOK expects private spending to gain 1.4 percent this year, slowing from its earlier projection of a 1.8 percent advance. "Private spending recovery will gather pace in the second half of the year, but its recovery pace may face a bumpy road due to the country's chronic problems, such as low birth rate and demographic structure," the central bank said. The BOK explained that low birth rate and a change in demographic structure are delaying a recovery in domestic demand. Auto sales have been slowing since the second half of last year, it added. But aided by a rise in wages and a progress in disinflation, households' real purchase power may improve during the second half of the year, according to the central bank. Source: Yonhap News Agency