South Korea's economy is expected to grow 3.4% on-year in 2014 following a recovery in the global economy, a local think tank said Wednesday, noting policy uncertainties still remain a challenge. The prediction made by the Korea Economic Research Institute (KERI), a research arm of the Federation of Korean Industries, is faster than the 2.6% expansion estimated for 2013, according to (Yonhap) news agency. This year's growth outlook edged up 0.2 percentage point from KERI's earlier estimate of a 2.4% gain made in October, while the 2014 outlook remained the same. KERI attributed the brighter outlook to a possible economic recovery in advanced countries sparked by a tapering of US quantitative easing. It said the global economy is anticipated to expand 3.6% on-year in 2014, compared to a 2.9% growth estimated for 2013. The institute said South Korea's consumer inflation is expected to stand at 2.2% next year, with the growth being limited by the stronger Korean won against the US dollar and stabilized prices of raw materials. South Korea's current account next year is estimated at US$63.3 billion, edging down from this year's $69.1 billion, due mainly to possible losses in the service sector amid the weak Japanese yen against the won.