By Jonathan Davies

South Korea has cut its growth forecast for 2014 and 2015, after weaker consumer and business sentiment.

The Ministry of Strategy and Finance said Asia's fourth-largest economy would grow by 3.4% this year, down from earlier predictions of 3.7%. And it expects growth of 3.8%, down from 4% next year.

The South Korean government said consumer spending and business investment was weaker than it expected.

It also said it expects growth to improve in 2015, with more stimulus measures taken effect and oil prices continuing to drop.

Domestic consumption is expected to grow by 3% in 2015, which would be the fastest growth since 2011.

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