The Organization for Economic Cooperation and Development(OECD) expects South Korea to grow two-point-six percent this year, in line with its earlier outlook.

The Finance Ministry said on Wednesday that the OECD presented the projection in its latest global economic outlook.

The OECD reported that South Korea needs to pursue expansionary fiscal policies such as a supplementary budget, but should take a cautious approach to tightening mortgage loan regulations in light of the housing market situation and rising household debt.

It projected the country will grow two-point-eight percent next year, cutting its growth forecast by point-two percentage points.

For this year, the OECD expects South Korea to make a modest recovery, citing export growth, increase in corporate investment and improving consumer sentiment.