The Bank of Korea says the domestic economy is beginning to return to its normal growth track.
In its new growth outlook released Thursday, the central bank forecast the Korean economy to grow four percent this year, compared to three percent growth in 2013.
"The pace of recovery we're seeing now is four percent annual growth. This is matching up with the nation's potential growth rate."
The new growth forecast is up zero.2 percentage points from the central bank's earlier outlook in January.
But the bank said the upward revision does not mean the domestic economy is on track to a stronger recovery.
Instead, it cited the central bank's recently adopted new international standards on calculating gross domestic product.
"The new standards, which inlcude contributions from new sectors like research and development, mainly led the rise in growth forecast. The outlook itself is not that different from January."
For next year, the bank expects the Korean economy to grow 4.2 percent,.. also up zero.2 percentage points.
However, it lowered the nation's inflation outlook for this year to 2.1 percent, citing a drop in prices of agricultural products in the first quarter.
The Bank of Korea also left its key interest rate unchanged at two-and-a-half percent for the eleventh straight month in April,. as widely expected.
"The central bank went on to say that there could be a rate hike in the second half of this year, if inflation goes up.
Hwang Ji-hye, Arirang News."