OECD revises up 2014 growth estimate for S. Korea to 4 pct

By 신현희
  • Published : May 6, 2014 - 21:47
  • Updated : May 6, 2014 - 21:47

SEJONG (Yonhap) -- The Organization for Economic Cooperation and Development revised up its 2014 growth outlook for South Korea, saying that the global economic recovery could help boost its exports.

Its growth projection for Korea was hiked to 4 percent for this year from the previously-forecast 3.8 percent. The international entity also raised its growth estimate for next year from 4 percent to 4.2 percent.

The 2014 outlook is in line with projections by the Bank of Korea and the Seoul government which expected the national economy to grow 4 percent and 3.9 percent, respectively.

The revision was attributed to a hike in exports possibly driven by the global economic rebound and the free trade deals that South Korea signed with the United States and the European Union.

The OECD recommended that the Korean government actively carry out fiscal and monetary measures by tapping on its sound fiscal conditions if external risks materialize.

Meanwhile, the OECD expected that the global economy will grow 3.4 percent this year, down from 3.6 percent that it previously forecast. For 2015, its growth outlooks for the world economy remained unchanged at 3.9 percent.