S Korea Q2 growth revised down to 0.3 %

South Korea's economy grew at a slower pace than initially estimated in the June quarter, data showed Thursday, increasing pressure on the central bank to cut interest rates again. With the deepening eurozone debt crisis hitting exports at a time of cooling consumption, the bank revised its 0.4 percent growth figure for the second quarter down to 0.3 percent from the January-March period. The growth rate was one-third of the 0.9 percent posted in the first quarter and marked the slowest increase in gross domestic product since a 0.3 percent expansion in the fourth quarter of last year. On an annual basis, GDP grew 2.3 percent from the second quarter last year, down from the previous estimate of 2.4 percent. "Growth in private spending slowed, while exports and facilities and construction investments contracted at a faster rate than expected," the central bank said. Analysts expect weak overseas and domestic demand to continue to pressure the central bank to cut its policy rate as early as next week, after a surprise reduction of 25 basis points on July 12. Bank of Korea governor Kim Choong-soo has said the bank expects increasing downside risks to its 2012 GDP growth forecast of 3.0 percent, which was revised down in July from its earlier projection of 3.5 percent.