South Korea's economy is expected to grow at a slower pace than previously anticipated this year largely due to a weak global recovery and sluggish trade conditions, the Organization for Economic Cooperation and Development (OECD) said Tuesday.

In its annual outlook report on South Korea, the Paris-based club of industrialized economies said Asia's fourth-largest economy will likely pull off 3.3 percent growth for 2012, down from a 3.5 percent growth forecast in its review released last month.

According to the report, the OECD said the country is recovering from last year's adverse trade conditions, but the rebound is gradually moving forward.

If worldwide trade recovers and if export momentum can be maintained along with rise in domestic consumption, South Korea should be able to pull off 4.0 percent growth in 2013, the OECD said.

South Korea's current account surplus should remain stable at around 1.5 percent of the gross domestic product this year, with the free trade agreement with the United States contributing to exports, it predicted.

The report showed that the country's consumer prices dipped to 3 percent levels in the first quarter, down from 4 percent in 2011.

This, it said, has improved household buying power.

The organization said Seoul should be careful of external risks and take steps to reach its balanced budget plan for 2013.

The OECD, meanwhile, predicted the global economy will gain 3.4 percent this year and expand 4.2 percent in 2013. It said the global recovery is slowly gaining momentum, although growth will likely be gradual and bumpy. (Yonhap News)