South Korea's new Finance Minister Yoon Jeung-hyun said on Tuesday that the nation's economy is likely to contract 2 percent this year, downgrading the government's earlier projection of 3 percent growth target.

"The minus growth projection is based on the latest expert opinions and economic indicators," Yoon, who took office on Tuesday, told reporters at a press conference.

"As the new finance minister, it is unpleasant for me to offer such a grim view of the economy, but I believe that honesty is now in need to regain trust of the people and the market," he added.

Earlier in December last year, the South Korean government forecast a 3-percent economic growth for this year.

Since major think tanks and investment banks cast grimmer outlooks on South Korea's economy, the nation's government has gone through many pressures to revise down its earlier optimistic projection, South Korea's Yonhap News Agency said.

The International Monetary Fund predicted earlier last week that the economy is to decline by 4 percent this year.

The Bank of Korea, South Korea's central bank, reported that the economy contracted 5.6 percent in the final quarter of last year from one quarter earlier, which marks the sharpest decline in more than a decade.

The new finance minister vowed to do his best to attain positive growth for next year, although the current gloomy economic conditions may continue for the time being.

"I cannot give details on growth figures, now but we will make every effort to bring growth at least back to positive territory next year," he said.

(Xinhua News Agency February 10, 2009)