The International Monetary Fund cut its growth forecast for Korea next year to 3.7 percent, down 0.2 percentage point from its earlier forecast. However, this still compares favorably to its growth forecast for this year of 2.8 percent.
The IMF report suggests that Korea will be able to maintain its gradual pace of recovery in 2014. It cited the central bank's recent rate cut and supplementary fiscal spending as the reason.
Data in this month's report by the Ministry of Strategy and Finance also point to the strong prospects of a sustained economic recovery. It said major economic indicators, including consumption, investment and output, are showing signs of improvement.
There were more than 25 million people at work in August, up more than 430,000 from a year earlier -- the largest on-year job growth in 11 months.
"Weak activity in the private sector and external risks coming from the U.S. budget standoff and the Federal Reserve's planned bond-buying stimulus tapering could have a negative impact on the economy," a ministry spokesman said.