South Korea's central bank Friday raised its growth outlook for 2010 to 4.6 percent as Asia's fourth-largest economy recovers strongly from the global downturn.
The Bank of Korea also upgraded its forecast to 0.2 percent growth this year compared to an earlier projection of a 1.6 percent contraction.
The bank had previously forecast growth of 3.6 percent next year.
"Private consumption is forecast to stage a sustained recovery," it said in a statement, adding corporate investment in facilities would grow rapidly.
The bank's revised outlook came a day after the government said gross domestic product (GDP) would grow five percent next year.
The bank said private consumption would grow 3.6 percent in 2010, faster than this year's projected 0.3 percent rise.
A series of economic numbers has fuelled optimism that South Korea is quickly pulling out of the global downturn.
The economy grew 3.2 percent in the third quarter from the previous three months, the fastest quarterly expansion in more than seven years, thanks to improving domestic demand and brisk exports.
The International Monetary Fund, in its latest estimate this week, raised its forecast to 0.25 percent GDP growth this year, up from October's projection of a 1.0 percent decline.
For 2010 it predicted an expansion of 4.5 percent, up from the previous 3.6 forecast.
But President Lee Myung-Bak Thursday cautioned against complacency, noting the export-driven economy is vulnerable to the outside world.
Copyright 2009 AFP Asian Edition
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