South Korean economy slows down

Falling exports were one of the big contributors to slowing growth

South Korea's economy slowed in the first three months of the year with growth at its lowest level since 2004, according to the Bank of Korea.

Gross domestic product grew 0.7% from the previous quarter, down from the 1.6% expansion seen at the end of 2007.

Falling exports were largely to blame for the quarterly slowdown along with weak consumer spending.

President Lee Myung-bak took office in February promising to boost annual growth to 7% - it grew 5% in 2007.

The investment bank Goldman Sachs said it was keeping its growth forecast for the full year at 4.8% despite the weak quarterly figures.

It predicted the government's programme of tax-cuts and deregulation would boost growth while the weak currency would help exporters.

Inflation figures were also released on Friday, with consumer prices rising 3.9% in the year to the end of March.

That figure is above the government's target of between 2.5% and 3.5% for the fourth month running.