[Infostock Daily=Reporter Park Jeong-Do] The Bank of Korea (BOK) predicted on the 27th that the Korean economy will reverse growth by -1.3% in the aftermath of the reproliferation of the new coronavirus infection (Corona 19). This year, the Korean economy is expected to receive the worst report card in 22 years since 1998 (-5.1%), the time of the IMF financial crisis. The Bank of Korea's Monetary Policy Committee froze the benchmark interest rate, which is 0.50% per annum.
The BOK lowered its forecast for economic growth (real GDP) this year by 1.1 percentage points from -0.2 percent to -1.3 percent. As Corona 19 re-proliferates since mid-August, it is inevitable that real economic indicators such as domestic consumption will be shocked. The Bank of Korea also lowered its growth forecast for this year from 2.1% to -0.2% in May.
The negative growth record is only in 1980 (-1.6%) and 1998 (-5.1%), when the BOK had a second oil wave since 1953, when the BOK compiled economic growth statistics.
The MPC said the global economic downturn was easing, but the pace slowed somewhat and the domestic economy declined slightly, but the private consumption improvement trend weakened and continued to be sluggish. “The government’s response is based on the assumption that it will be maintained at the current level (step 2), and if it becomes the third stage (social distance), the real economic recovery in Korea will be restricted, so it will definitely affect the stock price and exchange rate due to the impact of it,” said Lee Ju-yeol, the governor of the Bank of Korea.
The BOK lowered its forecast for economic growth next year from 3.1 percent to 2.8 percent. The government has decided to extend the period of reduction of rectification and landing fees for airlines from August to the end of December, and to reduce the rent of commercial facilities in the airport passenger terminal in conjunction with the passenger reduction rate. The payment grace period will be extended for four months.
Reporter Park Jeong-Do newface0301@naver.com
