Illustrative image (Source: Businesskorea.co.kr)

Hanoi (VNA) – The Republic of Korea (RoK)’s government on July 25 raised the country’s economic growth forecast by 0.4 percent to 3 percent as Asia’s fourth largest economy has been enjoying increased exports led by the global economic recovery, Yonhap News Agency reported.

The Ministry of Strategy and Finance said in a statement that a supplementary budget worth 11 trillion KRW (9.87 billion USD) that will focus on job creation and social welfare expansion will help the economy to grow 3 percent in 2018.

Therefore, the economic growth outlook for 2017 and 2018 is slightly higher the rate of 2.8 percent in 2015 and 2016, but lower than the figure of 3.3 percent in 2014.

Meanwhile, the International Monetary Fund (IMF) forecast that the RoK economy will gain 2.7 percent this year, and the Organisation for Economic Cooperation and Development (OECD) expected 2.6-percent growth, while Moody's revised its growth outlook to 2.8 percent.

The upward revision by the RoK government came as exports, a key economic driver of the RoK, has maintained its growth for eight straight months thanks to the global booming trade and oil price hike.

Besides, other positive elements were the recovery of maritime transport services, demands and investment in RoK-made semiconductors in overseas markets and the country’s increasing construction investment.

In addition, the improved political situation after President Moon Jae-in took office in May has also contributed to the positive economic revision.

The Ministry of Strategy and Finance said it will manage the growth pace of fiscal spending faster than that of nominal GDP in the coming five years in order to play a stronger role in boosting the economy.-VNA