S. Korea's economy forecast to grow 3.2% this year

South Korea's economy will grow 3.2 percent this year as the start of vaccinations raised hopes of a solid economic recovery from the COVID-19 pandemic, according to the ASEAN+3 Macroeconomic Research Office (AMRO).

The Bank of Korea's outlook of 3 percent growth for this year.

Among the roadblocks were the sluggishness of the service industry and local consumption due to tighter social distancing rules. A massive increase in debts is also likely to pose a threat to financial soundness in South Korea.

South Korea's economy appears to have returned to a growth track after contracting one percent last year, its worst performance in over two decades.

The country's exports rose 9.5 percent on-year in February US$44.8 billion from $40.9 billion a year earlier on robust shipments of chips.

The AMRO was established in 2011 to promote macroeconomic and financial stability in the Asian region, which covers the 10-member Association of Southeast Asian Nations (ASEAN) and its three Northeast Asian partners -- South Korea, China, and Japan.