The International Monetary Fund(IMF) on Friday sharply raised its growth outlook for South Korea this year. 

According to the Ministry of Economy and Finance, the IMF forecast the South Korean economy to grow three-point-six percent this year, up from its January estimate of three-point-one percent.

The IMF said the upgrade is based on the projection that the South Korean economy will recover this year with the support of "a gradual normalization of COVID-related factors and stronger external demand." 

The international body said it also took into account the anticipated impact of the latest 15 trillion-won extra budget.

It said the Korean economy contracted one percent last year, which was smaller than most other advanced economies. It explained that the country coped with the pandemic comparatively well, supported by solid economic fundamentals, effective quarantine and fiscal, monetary and financial policies.