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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.