The Korea Development Institute(KDI) has raised the nation's economic outlook for this year to four percent. 

In a biannual outlook released on Thursday, the state-run think tank painted a rosier picture on the back of better-than-expected economic performances in the first three quarters, increasing this year's growth forecast by zero-point-two percentage points from May.

The institute maintained its outlook for 2022 at three percent, saying private consumption will continue its slow pace of recovery and grow three-point-nine percent next year compared to an estimated growth of three-point-five percent this year. 

Amid concerns over growing inflationary pressures, the KDI raised its inflation expectations for this year and the next by zero-point-six percentage points each from its earlier forecast to two-point-three percent and one-point-seven percent. 

An increase in raw material prices will slow from mid next year, it said.