The South Korean central bank said Tuesday that the country's economy is expected to grow 5 percent in 2006.

The Bank of Korea (BOK) said in a report named "Outlook for Economy in 2006" that South Korea's economy will grow 5.5 percent in the first half and 4.6 percent in the second half of 2006.

The report showed the consumer spending in 2006 will contribute largely to the growth. Consumer spending will advance 4.5 percent in 2006, up from 3 percent growth this year.

Exports are forecast to grow 10.8 percent next year, compared with an expected 10.1 percent increase for this year. The nation's current account surplus will reach an estimated 16 billion US dollars in 2006, compared with 17.5 billion dollars this year.

Corporate capital spending is expected to increase 5.4 percent for the entire year of 2006, compared with an expected 3.9 percent gain for this year, while construction investment is forecast to accelerate to 1.7 percent in 2006 from an expected 0.3 percent increase for this year.

The report also said the economic growth will accelerate to 4.8 percent in the fourth quarter of 2005, up from a provisional 4.5 percent growth in the third quarter. And the whole growth rate for 2005 will be 3.9 percent, the report added.

Source: Xinhua