Bank of Korea Governor Rhee Chang-yong speaks during a press conference in Seoul, Jan. 16. Yonhap

The Korean central bank is widely expected to significantly lower its growth forecast for Asia's fourth-largest economy to 1.6 percent due to slower-than-anticipated recovery in domestic demand and sluggish export growth, experts said Sunday.

According to a survey conducted by Yonhap News Agency, seven local analysts and economists predicted that the Bank of Korea (BOK) would reduce its current growth projection of 1.9 percent when it announces an updated forecast on Tuesday.

"Sluggish private consumption, declining automobile exports due to U.S. tariffs and uncertainty in semiconductor exports will be factored into the revision," said Park Jung-woo, an economist at Nomura Securities.

Ahn Jae-gyun, an analyst at Shinhan Securities, also said a prolonged slump in construction investment and weak domestic demand would be major contributing factors.

BOK Gov. Rhee Chang-yong has previously hinted at a possible downward revision to around 1.6 percent.

The revision, if confirmed, would align with the Korea Development Institute's recent projection, which has lowered its 2025 growth estimate to 1.6 percent, delivering a 0.4 percentage-point reduction from its previous outlook in November. (Yonhap)