SEOUL, Oct. 23 (UPI) -- South Korea's economy is expected to grow 5 percent this year despite the geopolitical risk emanating from North Korea, the country's central bank said Monday.
The South Korean economy "has been continuing its upward trend on the back of healthy exports and a steady recovery in consumption," the Bank of Korea said in a report submitted to the National Assembly.
The bank acknowledged the country's economy is facing downside risks arising from North Korea's nuclear weapon test this month, but nonetheless said it is expected to grow 5 percent this year.
"Geopolitical risk has heightened at home and abroad (in the wake of the North's nuclear test) but, unless it deteriorates greatly, the economy is expected to keep growth on par with the country's potential growth level," the bank said.
South Korea says its economy's potential growth rate stands at about 5 percent, a level in which economic growth can be sustained without suffering negative effects such as inflation.
