South Korea's economy is expected to grow 3.2 percent this year as the start of vaccinations raised hopes of a solid economic recovery from the COVID-19 pandemic, a regional macroeconomic research agency said Thursday.

The forecast by the ASEAN+3 Macroeconomic Research Office (AMRO) is slightly higher than the Bank of Korea's outlook of 3 percent growth for this year.

The AMRO also expected South Korea's economy to grow 3 percent next year.

But the AMRO warned that growth is uneven in some sectors because the service industry and local consumption remain sluggish due to tighter social distancing rules.

A massive increase in debts is likely to pose a threat to financial soundness in South Korea, the AMRO said.

The AMRO was established in 2011 to promote macroeconomic and financial stability in the Asian region, which covers the 10-member Association of Southeast Asian Nations (ASEAN) and its three Northeast Asian partners -- South Korea, China and Japan.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Singapore and Vietnam.

Every year, AMRO delegations visit South Korea to discuss the country's economic policies. But this year, the annual meeting was replaced by a conference call due to the COVID-19 pandemic.

South Korea's economy contracted 1 percent last year, marking the worst performance in over two decades, but it appears to have returned to a growth track on the back of a mild recovery in exports.

Exports rose 9.5 percent in February from a year earlier to extend their gains for the fourth consecutive month on robust shipments of chips.

Exports came to $44.8 billion last month, compared with $40.9 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. (Yonhap)