Morgan Stanley has forecast South Korea's gross domestic product(GDP) to return to pre-COVID-19 levels in the first quarter of next year. 

In a report on Wednesday, the global investment bank took note of South Korea’s on-quarter GDP growth of one-point-nine percent in the third quarter despite added pressure on domestic demand due to tough social distancing and credited the growth to a robust rebound in exports. 

It assessed that Asia’s fourth largest economy bottomed out in the second quarter and will continue to recover thanks to a global economic rebound driven by policy responses and eased lockdowns.  

The bank also predicted an improvement in domestic demand amid eased social distancing rules, adding effective policies to curb the spread of the pandemic will help maintain a recovery trend for the country.