The Organization for Economic Cooperation and Development(OECD) has raised its growth outlook for South Korea for this year by half a percentage point to three-point-eight percent. 

Revising up its economic outlook from March on Monday, the OECD cited an accelerated pace of recovery for Asia’s fourth largest economy on the back of strong exports and expansionary fiscal policies, as well as a dip in new COVID-19 infections. 

It also pointed to improving private consumption and an increase in investment by the government and businesses buoyed by the Korean New Deal policy. 

The OECD's outlook, on the heels of a zero-point-five percentage point hike in March, is still lower than the four percent goal set by the South Korean government. The Bank of Korea also predicted the economy will grow four percent this year. 

As for an average growth rate for 2020 and 2021 so far, South Korea’s one-point-five percent is fifth fastest among the OECD members and second highest among the Group of 20 countries, trailing only to the U.S.' one-point-seven percent. 

The agency, however, pointed to a relatively slow pace of vaccination in South Korea compared to many member nations and advised the government to accelerate inoculation in order to remove potential hurdles in the recovery of domestic consumption and employment. 

South Korea should also maintain its expansionary fiscal policy until the economy enters a firmer footing, it said.