Goldman Sachs has forecast the South Korean economy will grow three-point-six percent next year and its benchmark stock index will reach two-thousand-800. 

In its outlook on South Korea and Taiwan released on Thursday, the global investment bank said the improving COVID-19 situation and easing trade tensions will help the two Asian economies make a swift recovery. 

Goldman Sachs noted that overseas demand will contribute to around three fifths of the growth of South Korea’s domestic product growth next year, adding its latest outlook on the country is point-four percentage points higher than a market average. 

It said stabilization of the pandemic-related situations on the back of active policy support will also help a recovery in domestic demand, expecting three-point-five percent growth of private consumption in South Korea next year. 

The Korea Composite Stock Price Index(KOSPI), which ended at two-thousand-475-point-62 on Thursday, was forecast to climb to two-thousand-800 next year with the bank maintaining an “overweight” view on the South Korean stock market.