South Korea's gross domestic product growth forecast for 2008 has increased from 5.1 per cent from 4.8 per cent, according to Goldman Sachs.
The latest report predicts strong exports and domestic consumption in Asia's fourth biggest economy.
The upwards revision has been fuelled by the expectation that president-elect Lee Myung-Bak will act to encourage investment. He has promised to push economic growth as high as seven per cent.
During his election campaign Lee Myung-Bak promised to ease regulation, increase spending, and raise per capita income to US$40,000 by 2017.
The Bank of Korea projected GDP growth of 4.7 per cent for 2008 in early December. Central bank governor, Lee Seong-tae, has said this forecast has not changed, Nasdaq.com reports.
The bank is targeting average annual inflation of 2.5 to 3.5 per cent for 2008.
Continuing high world oil prices may impact the South Korean economy, which is the fifth-biggest fuel importer in the world.
Further analysis of the South Korean economy could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
