South Korea economy shrank in 2020 for 1st time in 22 years

South Koreas central bank says the countrys economy shrank for the first time in 22 years in 2020 as the coronavirus pandemic destroyed service industry jobs and depressed consumer spending.Preliminary data released by the Bank of Korea on Thursday showed the countrys gross domestic product last year contracted 1 per cent from 2019.

PTI | Seoul | Updated: 04-03-2021 07:39 IST | Created: 04-03-2021 07:39 IST
South Korea economy shrank in 2020 for 1st time in 22 years

South Korea's central bank says the country's economy shrank for the first time in 22 years in 2020 as the coronavirus pandemic destroyed service industry jobs and depressed consumer spending.

Preliminary data released by the Bank of Korea on Thursday showed the country's gross domestic product last year contracted 1 per cent from 2019. It was the first annual contraction since 1998, when South Korea was in the midst of a crippling financial crisis.

The economy would have been even worse if not for the country's technology exports, which saw increased demand driven by personal computers and servers as the pandemic forced millions around the world to work at home.

The bank expects South Korea's economy to manage a modest recovery this year driven by exports. But it says it would take a longer time for the job market to recover from the damage to services industries such as restaurants and transportation.

The bank since March last year has maintained its policy rate at an all-time low of 0.5 per cent to help pump money into the economy. But experts say traditional financial tools aimed at lowering borrowing costs have had only limited effect during the pandemic that has damaged both supply and demand. The country reported another new 424 cases of the coronavirus on Thursday, bringing its national caseload to 91,240, including 1,619 deaths.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

On this day in 2006: Gillespie registered highest score by night-watchman

It was on this day, 15 years ago, when former Australia pacer Jason Gillespie registered the highest score by a night-watchman in international cricket. The Australian managed to play an unbeaten knock of 201 against Bangladesh in Chattogra...

COVID-19: Maha declares 6 states as places of sensitive origin

Struggling to contain the huge COVID-19 surge, Maharashtra has declared six states, including Delhi and the NCR region, as places of sensitive origin in a bid to stop the influx of other variants of coronavirus into the state.Maharashtra Ch...

Soccer-'Soulless', 'absolute disgrace': ex-players slam Super League

Former Liverpool midfielder Danny Murphy said plans for a breakaway Super League launched by 12 of Europes top clubs were soulless and expected a backlash from managers and players. The move, which sets up a rival to the Champions League co...

COVID-19: Streets in Mumbai wear deserted look amid Section 144 imposition

Streets wore a deserted look in Mumbai following the imposition of Section 144 in the entire state by the Maharashtra government in an attempt to curb the spread of the coronavirus. To prevent the COVID-19 surge in the state, Maharashtra Ch...

Give Feedback