S. Korea lowers 2012 growth outlook to 3%

South Korea's central bank on Friday lowered its 2012 economic growth outlook to three percent, citing a global slowdown and the eurozone debt crisis. The Bank of Korea's previous forecast in April was 3.5 percent. Its revised figure was lower than the government's forecast of 3.3 percent. The downgrade came a day after the central bank unexpectedly cut its key interest rate for the first time in more than three years. Asia's fourth-largest economy is expected to grow 3.2 percent in the second half after an estimated 2.7 percent expansion in the first half, the bank said. It also trimmed its 2012 inflation forecast to 2.7 percent from an earlier projection of 3.2 percent. Central bank deputy governor Kim Jun-Il told Dow Jones Newswires that South Korea's gross domestic product would likely grow 0.5 percent in the second quarter from the previous quarter. --Dow Jones Newswires contributed to this report--