South Korea's economy is expected to grow in the low end of 2 percent next year, probably higher than this year's estimated expansion, industry data showed on Sunday.

According to the median of eight brokerage houses on next year's growth estimates, Asia's fourth-largest economy is projected to grow 2.1 percent, with the highest estimate being 2.3 percent.

They cited the conclusion of the ongoing US-China trade row, expansionary policies in major economies and aggressive fiscal spending here.

"Sentiment will improve as uncertainties over the Sino-American trade row ease and major economies are supported by expansionary policies," Shinhan Financial Corp. said.

In the July-September period, the country's economy expanded 0.4 percent from the previous quarter, marking a slowdown from a revised 1 percent on-quarter expansion in the April-June period.

However, from the same period last year, the local economy grew 2 percent in the third quarter, on par with the revised 2 percent on-year growth in the previous quarter.

This growth apparently offers some relief as it follows an unexpected 0.4 percent on-year contraction in the first quarter.

For the year, the Bank of Korea expects a 2.2 percent expansion, but it hinted at a further cut in its growth projection amid heightened uncertainties.

The International Monetary Fund and the Organization for Economic Cooperation and Development projected 2 percent and 2.1 percent growth, respectively, for the South Korean economy. (Yonhap)