South Korea market shrank found in 2020 for first-time in 22 years
04 March, 2021
South Korea’s central lender says the country’s economy shrank for the first time in 22 years found in 2020 as the COVID-19 pandemic destroyed program industry jobs and depressed customer spending.
Preliminary data released by the lender of Korea in Thursday (Mar 4) showed that the country’s gross domestic product this past year contracted 1 % from 2019. It was the first twelve-monthly contraction since 1998, when South Korea was amid a crippling financial crisis.
The economy could have been a whole lot worse if not for the country’s technology exports, which saw increased demand influenced by computers and servers as the pandemic forced millions around the world to home based.
The bank expects South Korea’s economy to control a modest recovery this season driven by exports. Nonetheless it says it would take a longer time for the job market to recuperate from the damage to services industries such as for example restaurants and transportation.
The bank since March last year has maintained its policy rate at an all-time low of 0.5 % to greatly help pump money into the economy. But authorities say traditional financial equipment aimed at decreasing borrowing costs have had only limited effect through the pandemic that has damaged both source and demand.
The united states reported another 424 new cases of COVID-19 on Thursday, getting its national caseload to 91,240, including 1,619 deaths.
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