(MENAFN- QNA) The Korea Economic Research Institute (KERI) has forecast that South Korea's economy will post growth of 3.7% next year, up 0.2% from this year's outlook.
The institute made the projection in a report on economic growth outlook and policy tasks issued on Monday as it forecast that the global economy will see a recovery and Seoul will likely carry out monetary and financial policies in an expansive manner, according to Korea's (KBS WORLD) website.
The institute noted that the International Monetary Fund has forecast that the global economy will see growth of 4% this year, or 0.6% higher than this year.
However, the institute also forecast that recovery in the global economy could slow down due to a surge in global interest rates sparked by the US' implementation of its exit strategy, a slowdown in China's economic growth and the weakening yen.
The institute also projected that burdens related to rising household debts and uncertainties over whether the real estate market will recover will restrict efforts to reach a 4% economic growth.
The institute, meanwhile, forecast that South Korea's economy will post growth of 3.5% this year, or the same projection issued by the Bank of Korea.
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