The private economic research institute of South Korean predicts that the growth rate of the second quarter (Apr-Jun) may reach 2%, 1% higher than the forecast of the government.

As the financial crisis hit the world, the South Korea economy plunged to a negative growth rate of 5.1 % in the fourth quarter of 2008 and rebounded slightly to 0.1% in the first quarter this year, Chosun Ilbo reported on Tuesday.

As the production and export of mining industry and services are speeding up in the second quarter, the estimate of growth is revised upwards, researcher from LG Economic Research Institute said on Tuesday.

The economic growth rate may reach 1%, or even 2% compared to the previous quarter. The annual rowth rate may also be higher than the originally estimated negative 2.1%. The temporarily shirked economy is recovering quickly and is expected to revive after the end of the year.

U.S. investment bank JP Morgan also estimated the growth rate of the second quarter of South Korea will be as high as 2%. Eddie Lam, chief analyst at JP Morgan said that S Korea performed well in the second quarter. The inventory adjustments contributes to this growth by improving manufacturing productivity and raising service industries. Consumption is also stabilized to some extent. Based on these factors researchers re-estimated the growth rate of the second quarter as 2%.

In contrast, Korea Development Institute (KDI) is more cautious. KDI, Dr. Hyun Wook Kim said that as the Government expands its fiscal spending and exports, the growth rate of the second quarter may be slightly higher than 1%, but the recovery will be very slow.