Global investment bank Goldman Sachs has increased its economic growth forecast for Korea this year from 2.7 percent to 2.9 percent. It also raised its forecast for next year by the same margin to 3.7 percent.
Its prediction for this year is more optimistic than the government's anticipated 2.7 percent growth, but falls short of the government's target of 3.9 percent for next year.
Goldman Sachs said Korea is seeing exports rise on the back of economic recoveries in the U.S. and Europe, whiled domestic consumption is also gradually rising.
But if the U.S. government remains in a state of paralysis for over two weeks, this could undermine Korea's growth rate by the end of the year, it added.