The Korea Center for International Finance on April 5 released a report on the growth forecasts for major Asian economies this year by nine leading investment banks worldwide, saying Korea was expected to grow an average 3.8%. (Yonhap News)

By Xu Aiying and Lee Jihae

Leading investment banks abroad have raised their forecasts for Korea's economic growth this year to an average 3.8%, the fourth straight month of upward adjustment since December last year.

The Korea Center for International Finance in Seoul on April 5 released a report on the growth estimates of leading investment banks for major Asian economies. As of late last month, the average real GDP forecast of nine foreign investment banks -- Barclays, Bank of America Merrill Lynch (BoA-ML), Citibank, Credit Suisse, Goldman Sachs, JP Morgan, HSBC, Nomura and UBS – was 3.8%, or up from the 3.6% prediction made in late February.

Five of the nine banks raised their forecasts and four maintained theirs. UBS had the highest hike of 70 basis points to 4.8%, followed by BoA-ML with 50 (3.9%), Goldman Sachs (4.1%) and Barclays (3.7%) 30 each, and JP Morgan 10 (4.1%). Credit Suisse (3.6%), Nomura (3.6%), HSBC (3.4%) and Citi (3.3%) all retained their forecasts made a month earlier.

As for next year, the nine banks late last month expected Korea to grow 3.0%, the same rate from a month earlier.

xuaiy@korea.kr