Business

South Korea recorded its worst growth in more than two decades

A woman walks by the display of the South Korean capital Seoul last month. (AP photo)

The central bank said, Tuesday, that South Korea recorded its worst growth in more than two decades in 2020, but is expected to be among the best performing OECD economies in the wake of the Coronavirus pandemic.

The Bank of Korea said the country’s gross domestic product shrank 1% in 2020 compared to the previous year, citing weak private spending and exports.

It represented the worst annual growth since 1998, when the South Korean economy contracted by 5.1% in the wake of the Asian financial crisis.

However, South Korea is expected to be among the countries of the Organization for Economic Cooperation and Development group of advanced economies affected least affected by the epidemic in 2020.

In the fourth quarter of 2020 the economy of the South It is ranked 12th in the world Data showed 1.1% growth from the previous quarter, marking the second consecutive quarter of growth amid the epidemic.

The central bank said exports expanded 5.2% in the fourth quarter of last year compared to three months earlier, to offset the decline in private consumption due to tightening social distancing rules in recent weeks.

South Korea has shown signs of recovering from the virus retreat and the central bank predicted in November that the economy would grow 3% in 2021.

The south has largely contained the Coronavirus outbreak Meanwhile, the epidemic has killed more than two million people worldwide With extensive testing and contact tracing.

But authorities tightened social distancing rules late last year after the number of cases began to rise.

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