Goldman Sachs upgrades growth outlook for South Korea

South Korea's economy is likely to expand at a faster pace than expected this year due mainly to the country's improved exports, Goldman Sachs said Sunday. In its latest forecast, Goldman Sachs said the gross domestic product (GDP) of Asia's fourth-largest economy will expand 2.9 percent in 2013, revising its earlier forecast of 2.7 percent on-year growth. South Korea's GDP, the broadest measure of economic performance, will also grow 3.7 percent in 2014, compared to its earlier estimate of 3.5 percent, the investment bank added. Goldman Sachs said the upgrade came as South Korea posted a robust growth in its exports, and the country's jobs market and consumption may also gathere ground this year. South Korea's trade surplus for September came to $3.71 billion, rising sharply from $3.07 billion won tallied a year earlier, according to separate data by the Ministry of Trade, Industry and Energy. Meanwhile, the investment bank added that if the temporary shutdown of the United States government lasts for more than two weeks, it may emerge as a major drag on South Korea's economic growth for the fourth quarter. Washington declared a partial halt to its government operations as of Tuesday (Seoul time) after the Republicans and Democrats failed to compromise on a solution to federal spending.