Leading investment banks abroad have raised their outlooks for Korea's economic growth rate this year. Shown are containers at the Port of Pyeongtaek in Pyeongtaek, Gyeonggi-do Province. (Yonhap News)

By Lee Dasom

Leading investment banks abroad have all raised their outlooks for Korea's economic growth this year.

Domestic media such as Yonhap News on April 23 said JPMorgan raised its forecast from 2.2% to 3%, Citibank from 2.2% to 2.9% and Nomura from 2.3% to 2.4%.

These upward adjustments reflect the economy's "surprise growth" in the first quarter, when gross domestic product grew 1.7% from the previous quarter per the Bank of Korea, the highest since 2.2% in the third quarter of 2020.

Forecasts for interest rate hikes were also mixed. Citigroup predicted a raise of 0.25 percentage points each in July and October, while JP Morgan forecast two of 0.25 points each by next year, reflecting cost pressures from rising oil prices.

Nomura, however, expected rates to remain the same, saying the central bank will freeze rates until the end of next year due to lack of clear signs of an overheating economy.

dlektha0319@korea.kr