The Korea Center for International Finance on Nov. 6 said the average forecast of eight international investment banks for Korea's economic growth next year rose to 1.9% late last month, up from 1.8% in late September. (Yonhap News)

By Yoo Yeon Gyeong

Major investment banks abroad have raised their forecasts for Korea's economic growth next year thanks to expectations of the continued strong growth of exports led by semiconductors and cars.

The Korea Center for International Finance on Nov. 6 said the average projection of eight such banks was 1.9% late last month, up from 1.8% in late September.

Citi greatly raised its estimate from 1.6% to 2.2%, matching the rates released by JP Morgan and Goldman Sachs. Nomura forecast 1.9%, UBS 1.8% and Barclays 1.7%.

Bank of America was the only bank that froze its forecast at the level of the Bank of Korea's previous prediction of 1.6%.

The banks said Korea's export recovery is expected to continue next year, adding that the average current account surplus as a percentage of GDP next year surged from 4.7% in September to 5.3% last month.

dusrud21@korea.kr