The ASEAN Plus Three Macroeconomic Research Office(AMRO) projected a three-point-nine percent growth for South Korea this year and three percent next year on the back of solid recovery in exports and facility investments, according to the Finance Ministry on Monday.

However, the report reflects data through early July, and does not reflect the ongoing fourth wave of the pandemic.

The agency's upward revision from a three-point-two percent growth back in March is still lower than forecasts by the International Monetary Fund, Asian Development Bank, the South Korean government and its central bank.

The report said the South Korean economy is continuing a "strong rebound" this year on the back of the global economic recovery and solid demand for electronics, vehicles and other manufactured goods.

It also noted that high household debt and uncertain employment prospects could be a drag on private consumption, and uneven recovery between manufacturing and the services sector would continue due to the high risk of face-to-face contact.

But the agency added that if the government expands vaccinations, the pandemic's negative effects on the labor market and small enterprises will weaken.