Foreign investment banks (IBs) have slightly upgraded their forecasts for South Korea's economic growth for this year on growing hopes of a recovery, a report showed Monday.

However, economic uncertainties are high over a third wave of coronavirus infections, with the country reporting more than 600 daily new cases for the second straight day.

As of end-November, nine major global IBs, including Barclays and Goldman Sachs, projected Asia's fourth-largest economy to shrink 1.1 percent this year, compared with their median outlook of 1.2 percent contraction offered a month earlier, according to the report by the Korea Center for International Finance.

The upgrade comes amid rising hopes for an economic rebound in Asia.

The latest growth outlook is in line with an estimate by the Bank of Korea. Last month, the central bank forecast a 1.1 percent contraction for 2020 amid signs of recovery in exports.

Those IBs have maintained South Korea's 2021 growth outlook at 3.3 percent, according to the report.

Last week, Finance Minister Hong Nam-ki said the Korean economy is expected to contract around 1 percent this year, bracing for the fallout of the new coronavirus outbreak.

But Hong said the nation's economy may grow in the 3 percent range next year on improving external conditions, citing outlooks presented by international organizations and investment banks. (Yonhap)