SEOUL, Aug 27 (AFP): South Korea's central bank slashed its growth forecast Thursday, predicting the world's 12th-largest economy will shrink more than one per cent this year as it braces for a surge of coronavirus infections.
The country had been largely returning to normal after mostly bringing its outbreak under control, but multiple cluster infections in recent days have raised fresh fears over a nationwide pandemic.
And its trade-dependent economy has been battered by the impact of the virus on the rest of the world.
The economy is now expected to shrink 1.3 per cent in 2020, the Bank of Korea said, its second downward revision in four months having lowered its outlook in May to a 0.2 per cent contraction, from an earlier forecast of 2.1 per cent growth.
"The recovery of domestic economic growth is likely to be slower than previously forecast, largely due to the domestic resurgence of Covid-19," the bank said in a statement.
S Korea central bank cuts growth outlook on virus fears
FE Team | Published: August 27, 2020 22:25:58
S Korea central bank cuts growth outlook on virus fears
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