Seoul [South Korea], November 11 (ANI/Xinhua): South Korea's economy is expected to grow 3 per cent in 2022 on the back of a recovery in domestic demand, the Korea Development Institute (KDI) said Thursday.

It was in line with the estimates by the Bank of Korea (BOK) and the Ministry of Economy and Finance.

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The state-run think tank forecast that the economy would expand 4 per cent in 2021 thanks to the brisk export and the improved facility investment.

The BOK and the finance ministry set this year's economic growth outlooks at 4 per cent and 4.2 per cent each. The KDI said the country's private consumption would increase 3.5 per cent this year before picking up 3.9 per cent next year amid the robust domestic demand, especially in the services industry.

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The services industry is forecast to rapidly recover next year amid a higher vaccination rate against the COVID-19 that would help people return to normal life.

Growth among manufacturers could be restricted for the time being by the global supply disruption, the KDI noted.

The KDI predicted consumer prices to rise 2.3 per cent in 2021 and 1.7 per cent in 2022 respectively.

Those are 0.6 percentage points higher than the KDI's previous forecasts unveiled six months earlier. (ANI/Xinhua)

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