S.KOREAN ECONOMY SEEN TO GROW THIS YEAR DESPITE EXTERNAL RISKS.

SEOUL, Jan 1 Asia Pulse - Many economists predict South Korea's economy will maintain its growth in 2008, while others warn of volatile external risks.

A number of state and private think tanks in South Korea predicted last year that the economy, Asia's third-largest, would grow in the upper 4 per cent and lower 5 per cent range in 2008, mostly because of private spending and resilient exports.

The Organization for Economic Cooperation and Development (OECD) announced last month that South Korea's gross domestic product is expected to reach 5.2 per cent in 2008, while the Bank of Korea, the central bank, projected a 4.7 per cent growth, taking into account high oil prices and the subprime mortgage crisis.

South Korea's economy in 2007 is likely to have expanded up to the upper 4 per cent range from the mid-4 per cent forecast earlier.

Exports, one of the country's main growth engines, are projected to increase 11.4 per cent from 2007 to US$413 billion in 2008 because of strong performance by shipbuilders and automakers, the Korea International Trade Agency said last month.

"Exports are expected to increase at a double-digit rate in 2008 for six years running, boosted by brisk overseas shipments of autos and ships and strong demand from emerging markets," the association said.

Private spending is expected to be 4.3 per cent in 2008 compared to a projected 4.4 per cent for 2007 because of rising jobs and durable goods consumption, the Bank of Korea announced last month.