The Organization for Economic Cooperation and Development (OECD) has raised its economic growth outlook for the nation in 2006.

In its economic outlook report, the organization projected that South Korea would post a five-point-one percent growth next year, up two-tenths of a percentage point compared to its earlier projection.

The economic body said it decided to mark up its estimate as the nation’s private consumption has shown signs of recovery and exports have begun to pick up.

As potential risk factors to the nation’s economy, the report cited reduced consumption resulting from a rise in household debt delinquency and the possibility of a drop-off in the construction sector in the wake of the government's stern anti-speculation measure.

The report advised Seoul to counter problems arising from high real estate prices with taxation and expansion of supply.

The report forecast that OECD member countries would witness a two-point-nine percent growth next year with world trade expanding by nine percent.

According to the report, the U.S. and Japanese economies are likely to grow three-and-a-half and two percent respectively.

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