Bank of Korea raises South Korea's outlook on strong exports

South Korea's central bank said Thursday Asia's fourth-largest economy is likely to grow at a 3.0 percent annual pace this year, helped by strong exports.

Bank of Korea said South Korea's economic growth this year will be stronger than its earlier forecast of 2.8 percent growth in July. It was the bank's third upward revision this year. It said that in 2018, South Korea's economy will expand at a slightly slower pace of 2.9 percent.

Barring unforeseen setbacks, that would be South Korea strongest growth in three years.

The central bank attributed the upgrade to continued improvement in exports and increased capital expenditure. It said private consumption has recovered moderately and will likely pick up pace as the government implements more economic stimulus to boost spending.