Global ratings agency Fitch forecasts the South Korean economy will grow two-point-seven percent this year.
 
Fitch Ratings also projects the nation's central bank will freeze its key rate through 2019.
 
In its outlook report on the global economy on Tuesday, the ratings agency raised its short-term growth outlook on South Korea for this year by zero-point-two percentage points from its March report.
 
Fitch said the Korean economy grew one-point-one percent in the first quarter compared to the previous quarter thanks to an uptick in investment and exports.
 
It said that solid growth of two-point-eight percent is expected to continue next year on the back of rising spending.
 
The firm however said that growth in investment is likely to slow down due to the sluggish construction sector, and that export growth will also slow its pace affected by doldrums in the Chinese economy over the next several quarters.
 
Fitch also predicts the Bank of Korea will maintain its key rate at an annual one-point-25 percent through 2019.