Bank of Korea says South Korea's economy is likely to expand 2.8 percent this year thanks to strong exports, AP reports.
The central bank's growth forecast Thursday is an upward revision from its 2.6 percent growth forecast in April.
The bank cited increased exports and capital expenditure as the factors behind the revision. That means South Korea's economy will grow at the fastest clip in three years.
The bank said a slump in consumer spending is showing signs of improvement thanks to better wages and stronger consumer sentiment.
South Korea's new leader who took office in March to replace an impeached president has urged the parliament to approve a $10 billion stimulus package designed to add public jobs and increase welfare.The latest revision does not reflect impact from the stimulus package.