Global investment banks (IBs) see a mid-3 percent growth rate for South Korea's economy this year, which is higher than an estimate by the country's central bank, industry data showed Monday.

Average projections from 10 major IBs, led by BNP Paribas and Citibank, show South Korea's gross domestic product (GDP), the broadest measure of economic performance, growing 3.6 percent this year, according to the data. The figure is 0.1 percentage point higher than a month ago.

Last year, the Korean economy was forecast to have expanded in the mid-3 percent range.

Their latest outlook for Asia's fourth-largest economy this year is lower than the Korean government's 3.8 percent, but is a tad higher than the Bank of Korea (BOK)'s 3.4-percent forecast.

They said lower oil prices would improve South Korea's terms of trade, which in turn would boost the country's current account balance.

South Korea was the only nation among 10 major Asian economies whose growth estimate was raised for the year.

The foreign investment banks sharply cut their growth projection for Malaysia and Singapore to 4.9 percent and 2.9 percent, respectively, from the previous 6.2 percent and 3 percent.

Last week, the BOK sharply lowered its economic growth outlook for the year as the economy continues to stumble due to lackluster domestic demand.

The central bank cut its growth forecast for this year to 3.4 percent from an October forecast of 3.8 percent.

The latest forecast is dimmer than the finance ministry's revised outlook. In December, the finance ministry trimmed its growth estimate for this year to 3.8 percent from 4 percent, citing lower-than-expected consumption and business investment. (Yonhap)