Nine major global investment banks lowered their 2009 growth projections for South Korea to average 0.8 percent in consideration of the country's slowing exports, higher unemployment and anemic consumption.

According to the data provided by the Korea Center for International Finance, the new expectation is down from a 1.2 percent expansion predicted at the end of November and far lower than 3 percent growth projected in October.

Merrily Lynch turned sharply pessimistic about the South Korean economy, predicting the economy will shrink 1.2 percent contraction. At the end of November, the bank predicted a 1.5 percent expansion.

Switzerland-based UBS maintained its growth outlook of 3 percent contraction, while Goldman Sachs lowered its outlook to 1.8 percent from 3.1 percent.

The newly surveyed Deutsche Bank forecasted a 0.2 percent expansion.

The gloomy outlook comes as South Korea's government steps up efforts to boost its fast-slowing economy.

South Korean President Lee Myung-bak said last month that the economy could shrink in the first half of 2009 amid ongoing domestic and global economic recession.

(Xinhua News Agency January 12, 2009)