International ratings agency Standard and Poor's on Sept. 24 raised Korea's growth outlook for this year by six-tenths of a percentage point. (Yonhap News)

By Kim Hyelin and Lee Hana

International ratings agency Standard and Poor's (S&P) has raised Korea's growth outlook for this year by six-tenths of a percentage point.

In a report released on Sept. 24 on economic recovery for the Asia-Pacific region, S&P said the Korean economy is expected shrink 0.9% this year, down from its earlier forecast of a 1.5% contraction.

While the speedy of recovery will be different for each economy, the Asia-Pacific region led by China will propel economic recovery, the agency said. It added that it adjusted this year's GDP outlook for Korea, China, Taiwan and Vietnam based on favorable trade and increases in consumer spending.

For countries like Japan and Australia, S&P maintained or lowered its growth forecasts, saying more time was needed before things were normalized. 

China's outlook was raised from 1.2% to 2.1%, Taiwan's from 0.6% to 1% and Vietnam's from 1.2% to 1.9%. Japan's was lowered from minus 4.9% to minus 5.4% while Australia's remained at minus 4%.

S&P forecast minus 2% growth for the Asia-Pacific region overall this year and a rebound of 6.9% next year.

Shaun Roache, Asia-Pacific chief economist for S&P Global Ratings, said, "The pandemic is not over but the worst of its economic impact has passed. Governments are adopting more targeted strategies for flattening COVID-19 curves with less recourse to nationwide lockdowns. Households are spending again on services as well as goods."

kimhyelin211@korea.kr