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The International Monetary Fund (IMF) raised its growth forecast for South Korea from its estimate in January of 3.1 percent to 3.6 percent, citing robust exports and the country's fiscal policy support.
The revision was preceded by an IMF report on the outcome of its annual consultation with South Korea in January.
According to the IMF, South Korea is expected to recover this year, due to its gradual normalization of COVID-related factors and stronger external demand, while taking into account the anticipated impact of the latest 15 trillion-won extra budget.
The IMF's projection of Asia's fourth-largest economy is much higher than growth estimates by the Organization for Economic Cooperation and Development (OECD) and the Bank of Korea (BOK).
The OECD expected the South Korean economy to expand by 3.3 percent this year, and the BOK forecast it to grow 3 percent.
The South Korean economy contracted one percent last year, its first drop since the 1997-98 Asian financial crisis.
Exports rose 9.5 percent on-year in February for its fourth consecutive month of gain, but domestic demand and the job market remain sluggish, with the service sector hit hard by the pandemic.
