A local think tank forecast the domestic economy to shrink over 28 percent by 2050 as low birth rate and aging society lead to a decline in working age population and more economically dependent people.

​Based on data from the Organisation for Economic Co-operation and Development on Thursday, the Korea Economic Research Institute(KERI) projected the nation’s gross domestic product(GDP) to shrink 28-point-38 percent between 2022 and 2050 for an average annual contraction  of one-point-18 percent.

Under the assumption that other factors remain constant, the institute said the GDP will fall by zero-point-59 percent for every one-percent drop in the working age population, and by zero-point-17 percent for every one-percent increase in the economically dependent demographic.

According to the United Nations, the population in South Korea will likely fall to 45-point-77 million in 2050, down eleven-point-67 percent from 51-point-82 million in 2022.

The working age population will likely drop 34-point-75 percent by 2050 to 23-point-98 million, while the economically dependent bracket jumps 44-point-67 percent to 21-point-79 million.