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News Summary: SKorea raises growth forecast

The Associated Press

THE NEWS: South Korea raised its growth forecast to reflect the boost from government stimulus spending, predicting a 2.7 percent increase in 2013 compared with a 2.3 percent forecast three months ago.

THE DETAILS: The upward revision does not mean the export-reliant economy is set for a full-fledged recovery, the finance ministry said. Exports continue to be weighed down by the weak yen which has reduced Japan's demand for South Korean products.

THE BACKGROUND: South Korea's parliament approved a $15 billion stimulus plan in May as companies are reluctant to boost investments amid an uncertain global economic outlook. In 2012, South Korea's economic growth was just 2 percent.