South Korea’s economy is set to grow at a faster-than-estimated pace this year, Bank of Korea Governor Lee Ju-yeol said Wednesday.
The governor noted that the recovery is underpinned by exports and investment coupled with extra budget. The central bank had earlier forecast the economy to expand 3 percent this year.
Although the economy is set to rebound, a near-term tightening of policy is unlikely, he said.
As the economy has not fully recovered from the damage caused by the Covid-19, the situation does not warrant adjustments in policy stance, Lee said.
The governor said inflation is likely to be above the 1.3 percent projected earlier.