Major global investment banks predicted that South Korea's economy is likely to make a 2.9- percent contraction this year, adjusting their earlier forecasts, data showed Tuesday.

According to a report by Korea Center for International Finance released on Tuesday, an average prediction for South Korea's economic growth in 2009 made by 10 major investment banks has been turned down from a negative 2.3 percent to 2.9 percent.

The Switzerland-based UBS, which had earlier predicted a negative 3 percent growth, renewed its forecast with the most pessimistic figure, a 5 percent shrink.

Citibank and Standard Chartered also degraded their earlier projections, from negative 1.8 percent and negative 1.2 percent to negative 4.8 percent and negative 2.5 percent, respectively.

The rest of the banks stood still at their earlier forecasts, the report showed.

The investment banks' move came as market jitters on the South Korea's economy have been increasing in that the export-driven economy may be more vulnerable to a worsening global economic recession than other nations.

(Xinhua News Agency March 3, 2009)