South Korea Cuts Growth Forecast as MERS Saps Spending

A man walks through tour buses at a parking lot after schools cancel excursions due to concerns over the spreading of Middle East Respiratory Syndrome in Seoul, South Korea, Thursday, June 25, 2015. South Korea's finance ministry said Thursday that economic growth will slow this year as the outbreak of MERS saps spending and tourism. (AP Photo/Ahn Young-joon)

bigstory.ap.org - by Youkyung Lee - June 25, 2015

SEOUL, South Korea (AP) — South Korea's finance ministry said Thursday that economic growth will slow this year as the outbreak of Middle East respiratory syndrome saps spending and tourism.

The ministry cut its forecast for South Korea's growth to 3.1 percent from 3.8 percent. Asia's fourth-largest economy grew 3.3 percent last year.

The outbreak that began last month is having a bigger effect on South Korea's economy than a deadly ferry disaster last year that plunged the country into mourning.

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