SEOUL, Jul. 31 (Korea Bizwire) — A local think tank said Monday that it has revised up South Korea’s growth forecast for this year on the back of increased exports amid the global economic recovery.
The Korea Institute of Finance adjusted the country’s gross domestic product growth to 3 percent, up 0.2 percentage point from its previous estimate.
The upward revision is in line with the South Korea government’s forecast and is a bit higher than 2.8 percent and 2.7 percent estimated by the Bank of Korea and the International Monetary Fund, respectively.
The institute said the extra budget of 11.2 trillion won (US$9.83 billion) could contribute to higher economic growth, although sluggish private spending and heavy reliance on construction investment can fuel uncertainties.
In July, BOK Gov. Lee Ju-yeol said the extra budget, if implemented, could further raise its growth outlook for this year’s gross domestic product. In July, the parliament passed the extra budget bill meant to create jobs and prop up the country’s economy.